Bitcoin Cash Sees Price Surge Fueled by Whale Moves and Bullish Technical Trends, Despite Sluggish Network Usage
Bitcoin Cash (BCH) remains in the spotlight thanks to significant whale activity and positive technical signals, even though its on-chain engagement has dropped and some unusual transactions have sparked curiosity.
As of July 5, BCH was trading at $482.54, marking a slight dip of 0.23% over the past 24 hours, according to CoinDesk Research’s technical analysis model. In contrast, the broader crypto market, as measured by the CoinDesk20 Index (CD20), edged up 0.27% during the same period.
On July 1, BCH surged to $526.50, achieving its highest level in eight months amid a wave of market optimism, large-scale buying by whales, and speculative inflows. Over the past three months, BCH has climbed more than 75%.
During this rally, the cryptocurrency briefly exceeded $528, with daily trading volume tripling to over 120,000 tokens exchanged in a single day. Much of the momentum came from investors reallocating funds into mid-cap cryptocurrencies, seeking better returns outside the largest digital assets while the broader market showed strength.
Despite its price rally, BCH’s network fundamentals remain subdued. The number of active daily addresses has fallen to a six-year low, suggesting that much of the price movement is driven by speculation rather than actual network usage. Still, technical indicators point toward the possibility of further gains. For instance, BCH’s hourly chart in late June flashed a golden cross — a bullish pattern where the 50-day moving average crosses above the 200-day moving average.
Adding fuel to the rally, open interest in BCH derivatives rose 27.4% in the past week, reaching $578 million. Analysts are keeping an eye on the $478 to $508 price range as a crucial support zone to potentially stabilize BCH during any short-term corrections.
On July 4, blockchain analytics firm IntoTheBlock noted a sharp 122.45% rise in large BCH transactions exceeding $100,000. Altogether, these whale movements totaled 957,440 tokens worth roughly $482 million, echoing similar spikes observed in February, May, and late June—periods that often preceded major price swings.
Further intrigue arose on July 5, when a single transaction of 10,000 BCH (around $5 million) was recorded just before a historic transfer of 80,000 dormant bitcoin (BTC) valued at over $8.5 billion. Analysts speculate that the BCH transfer may have served as a test to check wallet functionality before executing the massive BTC move, which marked the largest activation of dormant bitcoin in over a decade.
Meanwhile, on July 1, the Bitcoin Cash Foundation announced the release of Knuth v0.68.0, an updated BCH node software version. This release consolidates the codebase and lays groundwork for future upgrades focused on optimizing UTXO efficiency. Although there haven’t been major adoption announcements this week, smaller community projects are still exploring BCH’s potential for micropayments and NFTs. Roger Ver, a long-time BCH supporter, continues to advocate for the token as a scalable alternative to bitcoin, though his recent endorsements haven’t yet translated into new institutional products.
Technical Analysis Recap
- Between July 4 at 15:00 and July 5 at 14:00, BCH traded in a narrow $7.52 range (1.57%) between $481.83 and $489.35.
- Solid support formed at $481.83, with heightened activity seen around 04:00 on July 5.
- Resistance appeared near $489.43, where repeated selling limited upward momentum.
- Between 13:06 and 14:05 UTC on July 5, BCH rose $1.20 (0.25%), briefly moving above $483.25 amid increasing trading volume.
- Toward the close of the session, support strengthened between $483.35 and $483.45, with the price peaking at $483.81 at 14:03.
Although BCH’s network activity remains subdued, whale movements and strong technical signals keep Bitcoin Cash firmly on traders’ radar as they watch for the next significant price shift.
