 ▲ Bitcoin Cash (BCH) © |
Bitcoin Cash surged 20% in a single day and has entered a battle above the $500 level, putting the sustainability of the rally to the test amid rising on-chain activity and a long bias in the futures market.
According to cryptocurrency media outlet AMBcrypto on February 7 (local time), Bitcoin Cash (BCH) vaulted intraday to a high of $544, staging a strong rebound. The advance is interpreted as the result of growing network usage combined with an expansion of bullish positioning in perpetual futures markets.
On-chain indicators point to a recovery in network liquidity. From February 1 to 17, the number of BCH transactions increased by 4,471, from 9,769 to 14,240. Over the most recent 24 hours, the average transaction value was tallied at $8,411, while the total value moved on-chain reached $119.76 million, roughly 1.16% of market capitalization. This suggests a potential increase in transactions led by large holders.
The derivatives market also leaned bullish. CoinGlass data show the OI-weighted funding rate turning positive, confirming an advantage for long positions. Liquidation data likewise favored longs overwhelmingly: long liquidations totaled just $102,340, while short liquidations came to approximately $1.5 million—nearly ten times higher.
However, warning signs remain. The hashrate, a key gauge of network security, has been trending downward, emerging as a short-term risk. If mining profitability continues to deteriorate, selling pressure from miners could follow. In addition, the spot market recorded around $1.1 million in selling over a single day, a factor that could cap further upside.
Overall, while BCH has secured supportive tailwinds from expanding on-chain participation and a long-heavy futures market, failure to hold securely above $500 could make heightened volatility unavoidable. In the near term, defending the $500 level is expected to be the critical pivot for trend continuation.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for investment losses based on it. The content should be interpreted solely for informational purposes.*