Bitcoin Cash (BCH) Price Surges 5% Against BTC, Forms Bullish Golden Cross Despite Weak On-chain Fundamentals

According to @godbole17, Bitcoin Cash (BCH) has surged over 5% in 24 hours, reaching a high of $528 while Bitcoin (BTC) and the broader market showed weakness. The bullish momentum is highlighted by a 'golden cross' on the BCH/BTC chart, where the 50-day simple moving average crossed above the 200-day SMA, a technical signal for a potential bull market. However, this price rally contrasts with weak on-chain fundamentals, as the network's daily active addresses have hit a six-year low, indicating a 'critical demand deficit'. This suggests the recent price action is largely driven by speculation rather than network adoption. For traders, key levels to watch are resistance around $527 and support established between $519 and $520.
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Bitcoin Cash (BCH) has delivered a powerful performance, decoupling from Bitcoin (BTC) and the wider cryptocurrency market to post significant gains. Over a 24-hour period, BCH surged more than 5%, climbing from a base of approximately $491.25 to a peak of $528, a price level not witnessed since mid-December. This bullish momentum was fueled by an extraordinary spike in trading volume. At one point, volume tripled its recent average, with over 120,000 BCH changing hands around 01:00 on July 1. Such high-volume rallies are often interpreted by traders as a sign of strong conviction and sustainability. The initial push established key resistance near the $527-$528 zone, which was tested multiple times. Following the peak, a support base formed in the $519-$520 range, indicating that despite a minor pullback, bullish sentiment remains intact. As of the latest market data, BCHUSDT is trading around $499.90, suggesting a deeper correction, yet its 24-hour high of $527.30 confirms the intensity of the recent buying pressure.
Bitcoin Cash (BCH) Price Explodes with Massive Volume
The detailed price action reveals a classic example of a volume-supported breakout. The ascent from the sub-$500 level was characterized by sharp, decisive moves upward. The period between June 30 at 13:00 and July 1 at 12:00 saw BCH gain 5.8%, moving from $491.25 to $519.65. The peak at $527.37 was achieved with exceptional volume, a critical indicator for technical analysts suggesting strong institutional or whale participation. This contrasts sharply with the broader market, where Bitcoin has struggled. The BTCUSDT pair shows a 1.65% decline, trading below $106,000 after failing to hold support above $107,000. This divergence highlights BCH's current relative strength, making it a focal point for traders looking for alpha in a sluggish market. While the immediate momentum has cooled, the establishment of a higher low above the recent base of $499.20 will be crucial for confirming the continuation of the uptrend.
On-Chain Data Flashes Warning Signs
However, a deeper look into the network's fundamentals presents a conflicting narrative. According to analysis from Omkar Godbole, the impressive price rally is not supported by a corresponding improvement in on-chain metrics. In fact, fundamentals for the Bitcoin Cash network have reportedly reached six-year lows in terms of daily active addresses. This suggests a "critical demand deficit," where the recent price appreciation is likely driven by speculative trading rather than genuine network adoption or utility. This dichotomy between bullish technicals and bearish on-chain data creates a complex trading environment. Traders must weigh the powerful chart signals against the risk that the rally lacks a sustainable foundation. A rally built purely on speculation can be volatile and prone to sharp reversals if market sentiment shifts.
BCH/BTC Chart Signals Major Bullish Reversal with Golden Cross
Perhaps the most compelling bullish signal for Bitcoin Cash comes from its trading pair against Bitcoin (BCH/BTC). This ratio, a direct measure of BCH's strength relative to BTC, has climbed nearly 20% in the past four weeks, reaching a six-month high of 0.0049 on the Binance exchange. This outperformance has culminated in a significant technical event known as a "golden cross." This occurs when the faster 50-day simple moving average (SMA) crosses above the slower 200-day SMA. A golden cross is widely regarded by technical analysts as a long-term bull market indicator, suggesting that short-term momentum is now strong enough to potentially shift the long-term trend upwards. This development on the BCH/BTC chart could attract significant capital from traders rotating funds out of Bitcoin and into what they perceive as an undervalued asset with strong upward momentum. While other major altcoins like Solana (SOL/BTC) have seen a 4.3% decline, BCH's strength is a clear outlier, reinforcing the potential for a sustained period of outperformance.
Omkar Godbole, MMS Finance, CMT
@godbole17Staff of MMS Finance.