• Bitcoin Cash trades in the green on Thursday after setting a new yearly high in the previous session.
• Derivatives and on-chain data signal bullish momentum, with Open Interest climbing and a buy-dominant phase emerging.
• Technical outlook supports a rally continuation, with targets set beyond the $700 mark.

Bitcoin Cash (BCH) is trading above $621 at the time of writing on Thursday after hitting a new yearly high, fueled by Bitcoin (BTC) surge to an all-time high. The bullish momentum continues to strengthen, driven by rising Open Interest and a buy-dominant phase. The technical outlook suggests rally continuation with bulls targeting levels beyond $700.

Bitcoin Cash on-chain and derivatives data show bullish bias

CryptoQuant data, as shown in the graph below, highlights buying pressure on Bitcoin Cash. The Futures Taker CVD (Cumulative Volume Delta) for BCH has flipped positive on Sunday and has been constantly increasing so far this week. This metric measures the cumulative difference between market buy and sell volumes over 3 months. When the 90-day CVD is positive and increasing, it suggests the Taker Buy Dominant Phase, while a negative and decreasing value indicates the Taker Sell Dominant Phase.

BCH Futures Taker CVD chart. Source: CryptoQuant

Adding to this optimism, CoinGlass’ data shows that the futures OI in Bitcoin Cash at exchanges reached the highest yearly level of $683.96 million on Wednesday, levels not seen since April 10, 2024. Rising OI represents new or additional money entering the market and new buying, which could fuel the current BCH price rally.

Bitcoin Cash Open Interest chart. Source: CoinGlass

Bitcoin Cash Price Forecast: Bulls aiming for levels beyond $700

Bitcoin Cash price reached a new yearly high of $634.3 on Wednesday, having rallied over 9% so far this week. At the time of writing on Thursday, it trades around $622, nearing its key resistance at $640.

If BCH continues its upward trend and closes above the $640 level on a daily basis, it could extend the gains toward its next resistance level at $719.5.

The Relative Strength Index (RSI) on the daily chart reads 64, above the neutral value of 50 and points upward, indicating bullish momentum. The Moving Average Convergence Divergence (MACD) showed a bullish crossover on Tuesday, generating buy signals and also showed rising green histogram bars above its neutral level, further supporting the bullish thesis.

BCH/USDT daily chart 

However, if BCH faces a correction, it could extend the decline to retest its daily support at $542.5.