Bitcoin Cash Rally Gathers Pace on Whale Interest and Bullish Technical Patterns, Despite Low Network Activity

Bitcoin Cash (BCH) continues to attract attention from whales and traders alike, even as its on-chain activity remains subdued and questions arise around some suspicious recent transactions.

As of July 5, BCH was changing hands at $482.54, marking a slight 0.23% decline over the previous 24 hours, according to CoinDesk Research’s technical analysis model. Over the same period, the broader crypto market, tracked by the CoinDesk20 Index (CD20), inched up 0.27%.

Earlier this month, on July 1, BCH climbed to $526.50, hitting an eight-month high amid a wave of optimism, whale buying, and speculative inflows. Over the past three months, the asset has surged more than 75%.

During this rally, BCH briefly pushed above $528 as daily trading volume spiked, tripling to over 120,000 tokens swapped in just one day. Much of this momentum came from investors rotating capital into mid-cap cryptocurrencies, looking for higher returns outside major crypto assets during a broader market upswing.

Despite the strong price action, BCH’s network fundamentals remain weak. Daily active addresses have slipped to their lowest point in six years, suggesting the rally is driven more by speculation than actual network usage. However, technical signals continue to point to further potential gains. Notably, in late June, BCH’s hourly chart flashed a golden cross—a bullish indicator where the 50-day moving average rises above the 200-day moving average.

Adding to the speculative outlook, open interest in BCH derivatives has climbed 27.4% over the past week, now sitting at $578 million. Analysts are closely monitoring the $478 to $508 price band as a critical support zone that could help stabilize any ongoing pullbacks.

On July 4, blockchain data firm IntoTheBlock reported a sharp 122.45% spike in large BCH transactions over $100,000. These whale trades totaled 957,440 tokens valued around $482 million, similar to other big spikes observed in February, May, and late June—periods that preceded significant price movements.

Further curiosity was sparked on July 5, when a 10,000 BCH transaction (worth roughly $5 million) was recorded just before a massive transfer of 80,000 dormant bitcoin (BTC) valued over $8.5 billion. Some observers suspect the BCH transaction may have been a trial run to test wallet functionality ahead of the huge BTC move—the largest awakening of dormant bitcoin in more than ten years.

Meanwhile, on July 1, the Bitcoin Cash Foundation announced the release of Knuth v0.68.0, the latest version of BCH’s node software. The update unifies the codebase and lays groundwork for future improvements aimed at boosting UTXO efficiency. Although there haven’t been major new adoption announcements this week, grassroots projects continue to explore BCH’s potential for micropayments and NFTs. Roger Ver, a prominent BCH proponent, remains vocal about promoting Bitcoin Cash as a scalable alternative to bitcoin, although his recent support has yet to translate into new institutional products.

Technical Analysis Overview

• Between July 4 at 15:00 and July 5 at 14:00, BCH traded within a narrow $7.52 range (1.57%) between $481.83 and $489.35.
• A strong support level was seen at $481.83, with notable trading activity around 04:00 on July 5.
• Resistance appeared near $489.43, where sellers repeatedly capped upward moves.
• Between 13:06 and 14:05 UTC on July 5, BCH gained $1.20 (0.25%), briefly breaking above $483.25 on rising volume.
• In the session’s closing minutes, support firmed between $483.35 and $483.45, with a peak price of $483.81 reached at 14:03.

Although on-chain data remains weak, significant whale activity and positive technical signals keep Bitcoin Cash in the spotlight as traders anticipate the next major market move.

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