Bitcoin Cash records an impressive increase – A sign of revival or just a short term "wave"?

Bitcoin Cash (BCH) surprised many by becoming the best-performing cryptocurrency in the Top 100 by market capitalization in June, far surpassing its competitors with an impressive growth margin. However, the question remains: Can BCH hold this momentum in the coming weeks?

Specifically, BCH surged 21% from the opening price to the closing price in June. Meanwhile, Bitcoin (BTC) only edged up 2.38%, while Ethereum (ETH) decreased by 1.71% during the same period.

The recent rise of BCH is essentially a continuation of a recovery that has lasted for three months. From the low of $249 set in April, the price of BCH has surged to $528 – equivalent to a doubling increase. Specifically in Q2 2025, this coin has exploded by 114%, recovering all the losses from Q1 and bringing BCH back to the price range it had established before the downturn.

BCH/USDT Monthly Chart | Source: TradingViewHowever, not all signals are positive. Some technical indicators are issuing cautionary warnings. For example, the RSI currently shows signs of bearish divergence – a signal that often precedes a weakening in an uptrend.

On the larger time frame chart, BCH is approaching the long-term downtrend line. If the upward momentum continues, the price could retest the resistance area around the $550 mark – higher than the current level, meaning there is still short-term upside potential. However, the market’s reaction at this level will be the key factor determining whether BCH can continue to break out or will be overwhelmed by selling pressure and turn back down.

Spot capital dominated in June

The on-chain data of Bitcoin Cash (BCH) reflects a strong bullish trend, supported by stable liquidity flows. According to data from the spot market, the buying capital has clearly dominated over the past month, indicating that buying pressure remains high – a positive signal for the price increase.

Bitcoin Cash spot trading flow | Source: TradingViewNotably, the selling pressure is relatively weak, indicating that the market does not have many significant resistance forces yet. However, there are still signs that the inflow of funds is gradually slowing down, while a small amount of selling pressure is starting to appear – although it is not yet large enough to reverse the current trend.

Meanwhile, the derivatives market has recorded a surge in open contracts (OI) over the past 4 weeks, from around 285 million USD to over 591 million USD. Although this figure is still low compared to major coins like Bitcoin or Ethereum, it indicates a significant increase in investor interest in BCH.

The trading volume in the derivatives segment also surged in June, as many traders actively participated in the market. This is a factor that can increase price volatility, as high open interest often leads to significant liquidation events. Nevertheless, despite the activity in derivatives, the price of BCH has maintained a stable upward trend.

Overall, this picture reflects a positive holding sentiment within the BCH investor community – partly explainable by the characteristics of the group of investors who currently hold this coin: they are not in a hurry to sell, and they have faith in the long-term growth prospects.

Long-term investors of Bitcoin Cash are making big profits but do not want to sell

The impressive rise of Bitcoin Cash (BCH) in June clearly reflects the sentiment of “holding rather than taking profits” in the market. Data from IntoTheBlock shows that long-term investors – those who have held BCH for over 12 months – currently account for up to 98% of total wallets, a figure that demonstrates strong resolve and confidence in the long-term potential of this coin.

Only a mere 2% of the circulating supply of BCH has been purchased in the past year, further reinforcing the view that the market is currently controlled by “diamond hands”. This contributes to weakening selling pressure and helps maintain price stability after strong rallies.

Notably, large investors – often referred to as “whales” – currently hold up to 39% of the total circulating supply of BCH. In terms of profitability, as much as 82% of investors are in a profitable position, while only 17% are incurring losses, indicating that the majority of holders are benefiting from the current uptrend.

The decline in the number of short-term investors is a positive signal, opening up the possibility that BCH will continue to retain most of the gains achieved in the last quarter. Despite significant progress, the price of BCH is currently trading at a deep discount compared to the historical peak of 2021 – this could create additional room for the next breakouts.

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