What to Know:
- BCH hit $649, a 17-month high, after rallying 8% in 24 hours.
- Grayscale’s ETF filing boosted optimism, though SEC approval remains uncertain.
- Whale accumulation and technical breakout fueled the surge, but overbought signals warn of risks.
Bitcoin Cash (BCH) has surprised everyone once again. BCH jumped +7% against Bitcoin and crossed $649, marking its highest level since April 2024. This rally comes at a time when sentiment around the 16th largest cryptocurrency was extremely negative.
In the last 24 hours, BCH rose 8%, which was more than the overall crypto market, which only rose 2.5% during the same time. Three main things have driven the breakout: hopes for an ETF, bullish technicals, and whale accumulation.
ETF Hopes Lift Market Mood
Grayscale Investments recently filed for spot ETFs for Bitcoin Cash (BCH), Litecoin (LTC), and Hedera (HBAR). The filing, submitted on September 10, comes after the U.S. Securities and Exchange Commission approved spot Ethereum ETFs earlier this year.
ETF approvals are often seen as a gateway for big institutional money. They also give legitimacy to the tokens included. Traders reacted quickly BCH’s sharp jump coincided with the ETF filing news, suggesting investors are pricing in the chance of stronger demand if the funds get approved.
But there’s a catch. The SEC has up to 240 days to make its decision, which means approval isn’t guaranteed. In the meantime, speculation could fuel volatility both ways.
Technical Breakout Signals Strength
This week, Bitcoin Cash also sent strong technical signals. The token was able to break through the important $572 resistance level, which had kept prices from going up in the past few months. The move was in line with Fibonacci extension levels, which traders often use to figure out where to set breakout targets.
Momentum indicators also back up the bullish case. The MACD histogram is now positive, and the 7-day RSI is at 69.12. This shows that momentum is strong but not quite too hot yet. It is getting close to the “overbought” area above 70.
Analysts are now focusing on important levels to watch, which are between $607 and $664. If it breaks out above $607, it could start a run toward $700. A $520 support level. If the price closes below this level, it could weaken the bullish setup and suggest a correction. A 200-day EMA ($490.5), a level of support that has helped BCH’s trend this year.
Whale Accumulation Adds Fuel
On-chain data provides another reason for the rally. On September 3, the number of large Bitcoin Cash transactions rose by 122%. More than 957,000 BCH (worth about $600 million) moved between wallets. This kind of activity usually means that whales are buying more. In the past, these kinds of moves happen before retail traders notice, which gives whales an edge in setting the market’s direction.
That said, exchange inflows also rose, with around $18 million in BCH entering exchanges on the same day. This hints that some large holders could be preparing to take profits if prices extend further.
From Fear to FOMO
Perhaps the most remarkable part of BCH’s rally is how it defied the crowd. Santiment reported that bearish sentiment around Bitcoin Cash was at extreme levels just before the surge. Traders were calling for a breakdown, not a rally.
But the crypto market often rewards those who take the opposite side of the majority. In this case, BCH’s rise shows that buying when others are fearful and selling when they’re greedy remains a winning strategy.
Conclusion
Bitcoin Cash has made a great comeback, reaching a 17-month high of $644. ETF optimism, a strong technical breakout, and whale accumulation have all helped the rally.
There are still risks, though. Indicators show that BCH is close to being overbought, and it could take months for ETFs to be approved, which means there is room for volatility. For now, everyone is watching to see if BCH can stay above $572 and break through the $607–$664 zone. A run toward $700 could be on the way if it does.
Also Read: Can Bitcoin Hold $115k Support? What Analysts Say
