Bitcoin Cash(BCH), continues to surge due to influx of individual investor funds…$625 Target price in sight

Bitcoin Cash has shown a continuous upward trend over the past two days, gaining approximately 4% on Friday alone. Following improvements in US inflation indicators, market risk appetite has increased, and despite global interest rate hike news, BCH maintains a relatively strong momentum. Positive signals are being detected in both spot and derivatives markets.

Retail investor influx in derivatives market

Looking at off-chain derivatives market data, key factors supporting BCH’s current upward momentum are revealed. Futures open interest( (OI) has increased by 18.69% over the past 24 hours, soaring to approximately $761.48 million, the highest in the past six months. The surge in OI indicates a large influx of retail investor funds, which acts as a catalyst for further gains in an upward trend.

What is even more noteworthy is the shift in funding rates. Previously, with a -0.154% rate, short positions dominated, but it has now turned positive at +0.0016%. This indicates that short liquidations are occurring simultaneously, giving the long positions the upper hand, reflecting a rapid change in short-term market sentiment.

) Technical analysis: Double bottom rebound strengthens upward trend

On the 4-hour chart, BCH has formed a double bottom rebound around ### and is currently trading above the 50-day and 200-day moving averages. This suggests a solid short-term upward trend.

$600 is the key resistance level. The current price is approaching the R1 pivot level at $591, and breaking above $600 on a closing basis is expected to be a critical point for the next upward phase. If the price clearly surpasses R1 and maintains the upward flow, it is likely to extend above $530 , with the R2 pivot at $625 becoming the next target.

Momentum indicators also support the bullish outlook. RSI has risen to 64, approaching overbought territory, indicating sustained buying pressure. The MACD has entered positive territory, with the histogram continuously expanding, signaling ongoing bullish momentum.

From a trend stability perspective, the situation is also positive. During the rebound, the 50-day and 200-day moving averages have turned upward, avoiding the death cross$600 , which would indicate a potential trend reversal.

( )If failure occurs ###Breakthrough failure

However, it is important to consider the possibility of failure to break through. In such a case, the trend may not have reversed but could be interpreted as a temporary correction$600 pullback$560 . The key support level to watch on the downside is near the 50-day moving average.

Ultimately, BCH’s short-term direction depends on whether it can establish above $600 . The combination of retail investor fund inflows and technical bullish signals makes it crucial to observe whether the current upward momentum can be maintained.