Here’s why Bitcoin Cash price is eying a 35% surge

Bitcoin Cash price continued its strong uptrend today, June 20, soaring to its highest point since Dec. 7. Bitcoin Cash ( BCH ) has risen in the last five consecutive weeks to trade at $485, up 95% from its lowest level in April. The rally occurred in a high-volume environment, with the daily figure jumping 75% to $757 million. Most of this volume was on Binance and HTX. Similarly, the rally came as futures open interest soared to $600 million, the highest level this year. Most of the futures open interest was from Binance, Bitget, Bybit, and OKX. You might also like: Bitcoin demand hits record low as short-term holders dump There was no major catalyst for the ongoing Bitcoin Cash price rally. A potential reason is that Bitcoin ( BTC ) was in the green on Friday, rising over 1% and reaching a high of $106,000. BCH is often seen as a proxy to Bitcoin because of their similarity. Still, there is a risk to the ongoing BCH price surge. For one, the weighted funding rate turned negative, a sign that investors in the futures market anticipate the coin will trade lower than it does today. Another risk is that, as the chart below shows, exchange inflows surged to $18 million on Thursday, the highest level in over a year. Rising exchange inflows are a sign that investors are selling the coin. BCH exchange inflow and outflow | Source: CoinGlass Bitcoin Cash price technical analysis BCH price chart | Source: crypto.news Another reason for the ongoing BCH price rally is that it formed a giant double-bottom pattern at $284, its lowest swing in Aug. last year and April this year. This pattern’s neckline is at $640, its highest swing in Dec. last year and 35% above the current level. BCH price has moved above the 50-day and 200-day Exponential Moving Averages, while the Average Directional Index has jumped to 23, a sign that it is gaining momentum. Therefore, the coin will likely continue rising as bulls target the key resistance at $640. A move above that level will point to more gains as it validates the double-bottom pattern. You might also like: World App’s parent company acquires Dawn Wallet, warns of an app ‘wind down’

Source: crypto.news