Bitcoin Cash ( BCH ) is starting to show strong upward momentum, breaking the $500 barrier, even as the mainstream encryption cryptocurrency market remains hesitant. Is this price surge just a flash in the pan, or the beginning of a long-term upward trend? Let's dive into several key indicators to find the answer.

Market activity significantly increased.
Data shows that the hourly trading volume of BCH has recently increased by about 5 times, with a large amount of capital flowing into this market. It is worth noting that it is not only retail investors but also institutional-level funds that are gradually entering the BCH market in the atmosphere created by the approval of Bitcoin ETFs.

The contract market performs outstandingly.
The open interest has reached its highest point in nearly six months, with a total trading volume exceeding 627 million, setting a new high for the past three months. This data indicates that the current market trend is not driven by short-term speculation from retail investors, but rather by large capital making strategic arrangements.

The technical indicators show positive signals.
From a technical analysis perspective, the symmetrical triangle pattern on the daily chart is about to complete its consolidation phase, with the relative strength index (RSI) breaking upward, and the Ichimoku chart showing a bullish golden cross, while the cloud has turned positive. These technical indicators collectively suggest a potential market reversal.

Focus on key price ranges
Market observers should closely monitor the key range of 550-570 USD. If BCH can firmly stand above and maintain this range, a target price above 600 USD will be very likely to be achieved, and it may even stimulate higher market expectations. However, if there is a surge followed by a pullback, it may trigger selling pressure from short-term profit-taking.