BCH Price Prediction: Unclosed contracts peak retracts, 85% of holders profit suggests bullish "reversal"

Bitcoin Cash (BCH) has been performing well among alts, especially as the recent trends of top Crypto Assets like BTC and ETH have cooled down. Although BCH is not as popular as other Crypto Assets, investors have been quietly accumulating this coin. As a result, Bitcoin Cash has maintained an overall bullish trend since April. In terms of value, BCH bottomed out at $249 in April and surged to $608 earlier this week. It has risen 142% over the past four months. However, the Close Position contracts have retreated from recent local highs, and with 85% of holders taking profits, it suggests the possibility of a bullish "reversal."

BCH Price Trend and Profitability: Healthy Correction or Bearish Reversal?

(Source: Trading View)

The reduced price trend chart shows that BCH has broken through a long-term downtrend line. This trend line has been active for over 12 months. This breakout indicates that bullish momentum remains strong, reflecting robust demand. However, it has also raised questions about the possibility of a natural pullback. This is because its Money Flow Index (MFI) indicates that liquidity inflow is decreasing. Notably, as of the time of writing, this crypto asset has not yet been overbought.

BCH has risen over 15% in July, marking the fourth consecutive month of gains. However, compared to previous historical highs, Bitcoin Cash is still significantly devalued.

IntoTheBlock's data reveals some interesting details about the profitability of Bitcoin Cash. For example, 85% of BCH holders are in profit, 3% of BCH holders are at a loss, and only 12% of BCH holders are losing. The data also shows that 98% of holders purchased Bitcoin Cash over 12 months ago. Only 2% of holders bought in the last 12 months, and just 1% of holders bought in the last 4 weeks.

IntoTheBlock also revealed that large holders account for about 39% of the circulating total of Bitcoin. At the same time, activity surrounding Bitcoin has significantly cooled over the past few days. The peak of large transaction volume reached 912.1 million USD, with the peak number of large transactions on July 25 being 335. As of July 30, the transaction volume has decreased by more than half, falling to about 133 transactions. The cooling of large transactions reflects investor sentiment after recently breaking through long-term resistance levels. This clearly indicates that investors are beginning to adopt more cautious strategies. Due to the uncertainty in August, the entire market has shown a similar reaction.

BCH Open Interest Retraces from Local Highs

The holdings of BCH have just experienced the largest increase since April. As of July 28, the holdings surged to 655 million USD. However, in the past two days, the holdings have dropped by about 140 million USD.

After the BCH price broke through the above resistance level, a slight pullback occurred shortly thereafter. In other words, this indicates that investors may partially Close Position due to rising uncertainty.

Future Outlook for BCH

On one hand, BCH has achieved an impressive rebound since April, which means it will face a pullback. On the other hand, despite the recent rise, its sell-off pressure is relatively weak. This may indicate that long-term holders are not yet ready to take profits. BCH still has a long way to go before re-testing previous highs, which may be one reason why people feel optimistic. Its low circulating supply, coupled with its long-term battle testing, may contribute to the sentiment of long-term HODLing.

Nevertheless, the recent market cooling highlights the risks of uncertainty and fluctuations in market sentiment. Perhaps one key point is that BCH may be overshadowed by more popular peers, but this has not deterred investors. In any case, its recent performance proves it to be one of the currencies attracting investors in 2025.

Conclusion:

BCH is currently at a critical turning point. Despite its strong price performance, the decline in open positions and high profit-taking rates suggest potential profit-taking pressure. However, the confidence of long-term holders and weaker selling pressure also bring uncertainty to BCH's future trend. Investors should closely monitor market dynamics and carefully assess risks.