BCH Price Forecast: This $215M Signal Could Drive Bitcoin Cash Price to $400

Bitcoin Cash Price Analysis

Bitcoin Cash price breached the $340 level on Aug 9, marking a 36.4% rebound from the weekly low recorded on Aug 5, derivatives market data suggests BCH traders may be betting on the positive impact of Russia’s recent legalization of crypto mining.

BCH Price Reclaims $340 After Russia Announcement

Bitcoin Cash started the week on a negative note, experiencing a sharp decline on August 5, as the price fell by more than 40% within just seven days. However, a series of bullish catalysts helped BCH regain its footing.

The most substantial driver of the recent Bitcoin Cash price recovery, was Russia’s legalization of crypto mining on August 6.

This announcement had an immediate and positive impact on the market, pushing BCH prices up by 36.4% to reclaim the $340 level by August 9. This price surge underscores the growing optimism around Bitcoin Cash as it capitalizes on favorable market conditions and regulatory developments.

In the last paragraph, it’s worth noting that the recent price recovery could be attributed to the surge in capital flowing into BCH futures markets, as investors begin to speculate on the long-term impact of Russia’s crypto mining legislation.

BCH Open Interest Surges $20 Million After Russia Announcement

Bitcoin Cash price is likely to enter another leg-up following its recent 24-hour correction.

Open interest refers to the total number of outstanding derivative contracts, such as futures and options, that have not yet been settled. A rise in open interest typically indicates that new money is entering the market, which can lead to higher prices.

The chart above shows how BCH open interest, increased by over $20 million in 24 hours, reaching $215 million at the time of writing, on August 9. This suggests that investors may be placing large bets on on the positive impact of Russia’s recent announcement.

The current trend in BCH open interest is a bullish signal, as it reflects growing confidence among investors. This influx of capital into the BCH futures markets could improve market liquidity and support the price uptrend for the coming days.

BCH Price Forecast: $400 Breakout Imminent

Bitcoin Cash is on the verge of a breakout to $400 as the price continues to trade above the key support level of $297.98, which aligns with the lower boundary of the Bollinger Bands.

BCH is currently facing a major resistance at the $373.76 level, which is the midpoint of the Bollinger Bands. A successful breakout above this level could set the stage for a rally toward the $400 mark.

The Relative Strength Index (RSI) is currently neutral, hovering around the 48.33 level. However, a move above the 50 level could signal renewed buying pressure, which would support a bullish breakout. Traders should also watch the upper boundary of the Bollinger Bands at $449.54 as a potential target if the price breaks above $400.

Given the recent surge in open interest and the positive sentiment surrounding BCH, a breakout above $400 seems imminent. The key support level to watch remains at $297.98, with any dips likely being bought up by investors anticipating further gains.