Bitcoin Cash (BCH) has shown a double signal, predicting an increase of up to 35%.

Bitcoin Cash (BCH) is having a breakthrough year with an impressive comeback. Since the beginning of the year, this cryptocurrency has risen more than 76%, becoming one of the strongest recoveries in the large-cap coin group.

In just 24 hours, BCH has increased by nearly 5%, bringing the weekly growth to 6%. The monthly growth has also stabilized around 5%, indicating that the current trend is not just a short-term bounce.

The signals from the price chart and on-chain data continue to reinforce a positive outlook. The liquidation map and technical indicators both suggest that if it can break through the important resistance level, BCH could increase by about another 35%.

Stable exchange fund flow, selling pressure weakens

In the past few weeks, the inflow and outflow of funds to exchanges has hardly seen significant fluctuations, as buying and selling activities remain balanced, reflecting the cautious sentiment of investors in the spot market.

The flow of BCH transactions has come to a standstill | Source: CoinGlassHowever, the "bull-bear strength" indicator shows a different perspective. This tool measures whether the buyers (bulls) or the sellers (bears) are gaining the upper hand. Since the beginning of September, the dominance of the bears has significantly decreased.

The bulls of BCH have not yet fully taken control | Source: TradingViewAlthough the market has not really entered a "bullish" state, the weakening selling pressure is a clear signal that the bears are gradually losing control. If the bulls come in stronger, the recovery momentum of BCH may gain additional support.

In the past, Bitcoin Cash often witnessed impressive breakthroughs when the bears weakened while the bulls had not completely taken over. If history repeats itself, the scenario of BCH's price extending its rise is entirely plausible.

The liquidation map shows a dense Short position

Another notable signal comes from the derivatives market. The 30-day liquidation map data on Bitget shows that BCH is currently still leaning towards the Short position.

Specifically, Short orders currently account for up to 58.83% of the total open positions around the 634 USD mark, while Long orders are only at 45.89%. This indicates that a majority of traders are betting on the possibility of BCH decreasing in value. However, if the market unexpectedly reverses and rises, Short positions will have to close quickly, creating additional buying pressure – a familiar scenario that often leads to the phenomenon of 'short squeeze'.

BCH liquidation map | Source: CoinGlassIn other words, the more people bet on the downward direction, the greater the risk of prices bouncing back. At that point, those who hold short positions will be forced to buy back, inadvertently driving a stronger upward momentum.

The open contract of BCH remains at an impressive level, indicating a trend of positioning in derivatives | Source: CoinGlass. Nevertheless, the market still records significant buying force, reflecting a certain positive sentiment. However, conversely, if BCH reverses and adjusts, these Long positions will face the risk of liquidation, leading to a risk of trend reversal.

Hidden bullish divergence signal on the price chart

The most notable highlight is in the daily chart of BCH. From the end of August to the beginning of September, the price continuously created higher lows, while the relative strength index (RSI) went down, forming lower lows.

RSI is an indicator that measures market momentum. When the price increases but RSI decreases, a phenomenon known as "hidden bullish divergence" occurs – a strong signal that often precedes the continuation of an upward trend.

Daily BCH/USDT Chart | Source: TradingViewIn other words, although the chart seems to be fluctuating, the upward trend is still dominant. This indicates that the bulls are quietly accumulating strength, preparing for strong advances.

If this divergence plays out, BCH has significant room for growth. The important resistance level at 583 USD will be a key milestone; if broken, the price could advance to 777 USD – equivalent to an increase of nearly 35% from the current level around 572 USD.

However, the 620 USD region remains a formidable barrier that the bulls need to overcome before aiming for higher levels. Many analysts believe this is also a key accumulation area, shaping the next trend of BCH.

The main price zones of BCH | Source: X## Conclusion

Bitcoin Cash is showing impressive strength: up 76% in one year, maintaining stable monthly performance and increasing short-term momentum. These signals help BCH stand out significantly compared to many other coins in the large-cap group.

All eyes are currently on the 583 USD mark. If it surpasses this level, BCH has the potential to surge to 777 USD, equivalent to a 35% increase from the current price. Conversely, if it fails to conquer this point, the bears still have a chance to counterattack. For traders, the message is extremely clear: the 583 USD mark will be the deciding point, and the next breakout could create a significant wave.

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