Bitcoin Cash (BCH) Leads Gainers After 20% Rally, Analysts Predict Further Upside

Bitcoin Cash (BCH) surged over 20% on November 20, leading the top 100 cryptocurrencies as analysts highlight bullish chart patterns suggesting more potential gains ahead. The rally has extended BCH’s two-week gains to over 41%, with the altcoin reaching a 7-month high of $529 at the time of writing. Alongside the price rise, daily trading volume has surged, doubling from the previous day to hover around $1.48 billion.

While the recent rally is impressive, BCH remains 86% below its all-time high of $3,785.8, which was reached on December 20, 2017. However, the current price movement has generated a fresh wave of optimism in the market.

Key Drivers Behind BCH’s Rally

Bitcoin Cash, created in 2017 as a hard fork of Bitcoin, was designed to tackle scalability issues faced by Bitcoin. One of the major differences between BCH and Bitcoin is its larger block size—up to 32 MB for Bitcoin Cash, compared to Bitcoin’s 1 MB limit. This larger block size allows BCH to process more transactions within the same timeframe, making it a more efficient network in terms of transaction throughput.

BCH's latest price surge comes amid a broader upward movement in the crypto market, with Bitcoin (BTC) itself rising over 4.5% and reaching an all-time high of $97,500 before cooling slightly to $97,093. The anticipation surrounding Bitcoin potentially breaking the $100K mark in the near future has further fueled positive sentiment across the market, indirectly boosting Bitcoin Cash.

The “Bitcoin Effect” and Growing Interest in Bitcoin Cash

The renewed interest in Bitcoin—amplified by President Donald Trump's recent announcements about U.S. initiatives in the digital asset space, including a proposal for a national Bitcoin reserve and plans to position the U.S. as the "crypto capital of the planet"—has had a significant impact on BCH. Historically, periods of rising Bitcoin interest have led to increased demand for Bitcoin Cash and other Bitcoin-related assets, a phenomenon often referred to as the "Bitcoin effect."

Notably, Bitcoin SV (BSV), another hard fork of Bitcoin, also saw a 12% rise in the last 24 hours, highlighting the spillover effect from Bitcoin’s rally. For many investors, BCH and BSV offer more affordable exposure to the original vision of Bitcoin as a peer-to-peer electronic cash system.

Analyst Predictions and Bullish Sentiment

Futures open interest in BCH has spiked by 49% over the past day, reaching $377 million, signaling strong investor activity and a rising capital inflow into Bitcoin Cash. This surge in open interest suggests that more investors are betting on further price gains for BCH, indicating increasing market confidence.

Community sentiment around BCH is also overwhelmingly bullish, with 97% of 40,516 traders on CoinMarketCap expecting short-term price increases. Additionally, sentiment on social media platforms like X (formerly Twitter) has turned positive, with multiple analysts and traders forecasting significant price targets for the altcoin.

Analyst Forecasts: What’s Next for BCH?

Several analysts are offering optimistic price projections for BCH. Pseudonymous analyst CW pointed out that BCH bulls are currently facing resistance at the $530 level. However, CW believes that if BCH can break through this barrier, it could rally quickly to $640 or higher. This would represent a significant short-term upside, provided the bullish trend remains intact.

CW also noted that BCH is approaching the completion of a multi-month cup and handle pattern, which, if validated, is traditionally considered a strong bullish signal for long-term price growth.

Another analyst, XForceGlobal, highlighted that BCH has been in an accumulation phase for over 357 weeks, forming higher lows. He pointed to a massive triangle pattern on BCH’s chart, with a breakout above the pattern likely to result in significant price gains.

For those with a long-term outlook, analyst Javon Marks has set a target of $3,745 for BCH, which would represent an increase of over 600% from current levels. Marks cites several key bullish chart patterns on the monthly timeframe as the foundation for his long-term price target.

Conclusion: A Promising Outlook for BCH

Bitcoin Cash’s recent rally has captured the attention of both traders and analysts, as bullish chart patterns and growing investor interest signal further potential upside. With the price surging to a 7-month high and the market sentiment turning positive, many are forecasting additional gains for BCH in the short and long term.

While BCH remains far from its all-time high, analysts and traders are increasingly optimistic about its prospects, especially as the broader cryptocurrency market sees renewed interest in Bitcoin and related assets. As Bitcoin Cash continues to gain momentum, it could be on track for even more substantial gains, provided it can maintain the current bullish momentum.