Bitcoin Cash hits a new annual high: Is the uptrend sustainable?

Bitcoin Cash (BCH) is currently holding steady above the 621 USD level on Thursday afternoon, right after reaching the highest peak of the year. This breakout is fueled by the strong upward momentum of Bitcoin (BTC), which has just hit an all-time high. The bullish momentum of BCH continues to strengthen, supported by an increase in open contracts and overwhelming buying trends. Technical Analysis shows that the upward trend still has room to expand, with the next target for the bulls aimed at higher levels above 700 USD.

On-chain data and derivatives strengthen the bullish trend of Bitcoin Cash

According to data from CryptoQuant, the chart shows that buying pressure for Bitcoin Cash is clearly increasing. The Futures Taker CVD (Cumulative Volume Delta) index of BCH turned positive on Sunday and has maintained a continuous upward momentum since the beginning of the week. This index reflects the cumulative difference between buying and selling volume in the market over a 90-day period. When the 90-day CVD is positive and continues to rise, it indicates that the market is entering a Taker Buy Dominant (buying dominance) phase; conversely, a negative and declining value signals Taker Sell Dominant (selling dominance).

Futures Taker CVD chart of BCH | Source: CryptoQuantAdding to the positive picture, data from CoinGlass recorded the number of BCH futures contracts on exchanges reaching a yearly high of 683.96 million USD on Wednesday, marking a peak not seen since April 10, 2024. The increase in open contracts means new capital is flowing into the market, along with many new buy orders, which could further strengthen the current bullish momentum of BCH.

Open contract chart of Bitcoin Cash | Source: CoinGlass## Bitcoin Cash price forecast: Bulls aim for the area above 700 USD

Bitcoin Cash (BCH) has just established a new high for the year at 634.3 USD on Wednesday, marking an increase of over 9% in just one week. As of Thursday noon, BCH is fluctuating around 622 USD, approaching the key resistance level of 640 USD.

If the upward momentum is maintained and the closing price is above the 640 USD mark on the daily chart, the breakout trend may extend towards the next resistance area at 719.5 USD.

Daily volatility of BCH/USDT | Source: TradingViewOn the daily chart, the RSI indicator reached 64 — well above the neutral threshold of 50 and continues to trend upward, reflecting strong bullish momentum. At the same time, the MACD recorded a bullish crossover on Tuesday, signaling a clear buy, while the green histogram bars extend above 0, further reinforcing the positive outlook.

Nevertheless, in the adjustment scenario, BCH is likely to revisit the strategic support zone at 542.5 USD before determining the next direction.

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