BCH tops gainers after 20% rally, analysts expect more upside

$BCH jumped over 20% on Nov. 20, leading the top 100 cryptos, as analysts point to bullish chart patterns hinting at more gains.

Bitcoin Cash’s ($BCH) rally has extended its fortnightly gains to over 41%, with the altcoin trading at a 7-month high of $529 at the time of writing. The crypto asset’s price rally was accompanied by a surge in daily trading volume, which had doubled from the previous day and was hovering around $1.48 billion.

Despite the recent price rise, the token remains down 86% from its all-time high of $3,785.8, reached on Dec. 20, 2017.

Bitcoin Cash, created in 2017 as a hard fork of Bitcoin to address scalability challenges in the flagship crypto asset, has historically followed in the footsteps of its predecessor.

A key difference between the two assets is the block size; Bitcoin Cash supports blocks of up to 32 MB, significantly larger than Bitcoin’s 1 MB limit. This larger block size enables Bitcoin Cash to process a greater number of transactions within the same time frame.

$BCH’s recent rally coincided with Bitcoin rising over 4.5% in the last 24 hours, reaching an all-time high of over $97,500 before cooling back to $97,093 at the time of writing.

The crypto community’s hype surrounding the crypto king potentially breaking the $100K mark in the coming days has further boosted positive sentiment around Bitcoin Cash, driving a $178 million increase in its market cap over the past 24 hours.

Meanwhile, interest in Bitcoin has spiked following President Donald Trump’s announcement about major initiatives involving digital assets, including a proposal for a national Bitcoin reserve in the U.S. and a promise to position the United States as the “crypto capital of the planet.”

Periods of significant interest in Bitcoin have often spilled over into $BCH and other crypto assets closely related to Bitcoin, a phenomenon known as the “Bitcoin effect.” Notably, Bitcoin SV ($BSV), another hard fork of Bitcoin, also rose by 12% over the past day.

Many market participants view $BCH and $BSV as cheaper alternatives to Bitcoin, offering exposure to a cryptocurrency tied to the original vision of a decentralized peer-to-peer electronic cash system.

Analysts project big targets

Data from CoinGlass shows that open interest in $BCH futures has risen 49% over the past day, standing at $377 million at press time. A rise in open interest suggests growing investor activity and increased capital flow into Bitcoin Cash, culminating in price gains for the asset.

Community sentiment around $BCH is also bullish, with 97% of 40,516 traders on CoinMarketCap expecting short-term price gains.

Similarly, sentiment on X has turned positive, with several analysts and traders predicting strong price targets for the altcoin.

Pseudonymous analyst CW noted that $BCH bulls are currently attempting to overcome selling pressure at $530. He predicted that once the altcoin breaks past this level, it would likely rally swiftly to $640 and beyond, provided the trend remains strong.

In an earlier X post, the analyst noted that $BCH was close to completing a multi-month cup and handle pattern, which is typically considered a bullish signal in the long run if the pattern is validated.

Another analyst, using the moniker XForceGlobal, observed that $BCH has been accumulating for over 357 weeks while forming higher lows. He shared a $BCH chart showing the formation of a massive triangle pattern, with a breakout above it typically leading to major gains for altcoins in technical analysis.

Meanwhile, analyst Javon Marks has set a long-term target of $3745, suggesting $BCH could soar to over 600% from current levels, citing key bullish patterns that have flashed on the monthly chart.