Bitcoin Cash (BCH), which rebounded from the double bottom, is attracting retail funds $600 upward movement... next target $625

Bitcoin Cash continues its consecutive upward trend from last Friday to Sunday, attracting market attention. As signals of US inflation slowdown(November CPI 2.7%) stimulate risk-on sentiment, BCH is showing a flow that even despite the tightening signal of the Bank of Japan’s interest rate hike, is strengthening buy momentum.

Capital Flows, Changes in OI and Funding Rate

More noteworthy than the movement in the spot market are the signals from the derivatives market. BCH futures open interest(OI) has surged by 18.69% within 24 hours to reach $761.48 million, the highest in 6 months. The rapid increase in OI indicates a large influx of leverage funds, serving as a catalyst for additional upward momentum in an uptrend.

What is even more interesting is the change in the funding rate. The weighted funding rate of OI has reversed from -0.154% to +0.0016%, indicating a rapid shift in market sentiment. As the short position dominance quickly reorganizes into a long position-centered structure, short-term funds are flowing into the buying side.

Technical Analysis: Double Bottom Rebound, $600 as a Critical Threshold

Looking at the 4-hour chart, BCH formed a double bottom pattern near $530 and then started to rebound. The current price is supported by the upper bands of the 50EMA and 200EMA, approaching the R1 pivot($591).

Short-term target scenarios:

If BCH breaks above the R1 pivot and maintains the momentum, an extension above$600 is highly likely to be realized. In this case, the next target is the R2 pivot at $625. The rise to this zone is supported by sufficient technical evidence.

First, the moving average alignment is quite bullish. During the rebound, the 50EMA and 200EMA both turned upward simultaneously, completing a formation opposite to a death cross( and golden cross). This indicates stability in the medium-term trend.

Momentum indicators also show favorable signals. RSI has risen to 64, indicating strong buying strength, and MACD has entered positive territory with the green histogram expanding. This combination of indicators suggests that upward momentum remains strong.

Downside scenario:

If the breakout$600 fails and the price corrects downward, it is likely to be interpreted not as a trend reversal but as a “retest( pullback).” In this case, the support level below is around the 50EMA$560 . Considering the current real-time price($568.61), it is already near this zone.

Conclusion: Micro-funds taking the lead amid macro events

Currently, the BCH market is driven more by positioning and supply-demand relationships than macroeconomic news. Retail capital inflows and leverage fund expansion are fueling short-term momentum, supported by technical conditions. Whether it breaks out or enters a correction phase will be a crucial turning point for the next stage.