Bitcoin Cash (BCH) has emerged as one of the few cryptocurrencies to show significant growth in June, increasing by over 23%. Trading volume has surged, yet signs of sustainability remain unclear.
Bitcoin Cash Volume Increases
One of the first signs of momentum was a sharp increase in trading volume. In mid-June, Bitcoin Cash saw its daily trading volume climb from under $350 million to nearly $500 million, coinciding with its breakout past the $445 resistance level. However, compared to its peak in December 2024, when volume topped $1.2 billion, the current volumes still appear modest.
Bullish Structure but Risks Persist
Bitcoin Cash has carved out a classic bullish structure, forming an ascending triangle with higher lows since late May. It is currently pressing against a key resistance zone between $504 and $565. If bulls manage a clear breakout above this range, it could open doors for a move toward $600-620. However, if the price stalls again, it may mark another local top.
Weak On-Chain Activity
While the price and volume trends appear strong, on-chain activity remains subdued. Active addresses have increased from an average of 30,000-32,000 earlier in Q2 to around 38,000-39,000 recently. This is a healthy uptick but nowhere near the parabolic address expansions seen in previous bull cycles. The modest rise suggests that this rally is primarily a result of existing holders and traders chasing momentum rather than new entrants.
Bitcoin Cash shows strong surface performance; however, the lack of significant on-chain signals raises questions about the longevity of the current rally. The coming days may be crucial for determining BCH's future direction.
