Bitcoin Cash Surges 27.2% Outperforming Bitcoin

Bitcoin Cash (BCH) has recently outperformed Bitcoin (BTC) in the cryptocurrency market, with a 27.2% rally over the past six weeks. This performance has raised questions about whether BCH can continue its bullish momentum beyond the $600 mark.

One of the key factors contributing to BCH's success is its lower transaction fees compared to BTC. Despite BCH's market cap being significantly lower, its transaction fees remain 99% lower than BTC's. This cost advantage could be a driving force behind its growing popularity among users and investors.

Historical data suggests that BCH has the potential to continue its bull run. The cryptocurrency has shown resilience and the ability to recover from market fluctuations, which could bode well for its future performance. However, it is important to note that the cryptocurrency market is highly volatile, and past performance is not indicative of future results.

Analysts have varying opinions on whether BCH can sustain its momentum beyond $600. Some believe that the current bullish trend could continue, driven by factors such as increasing adoption and lower transaction fees. Others are more cautious, pointing to the overall market volatility and the dominance of BTC as potential challenges.

Bitcoin Cash had a +0.25 correlation with BTC over the past 30 days, indicating only a weak positive correlation between the price moves of the two. This divergence raised eyebrows and hinted at a disconnection between two top-tier assets—one that traders might capitalize on. Bitcoin Cash had a negative correlation with many other popular altcoins, such as Ethereum [ETH] and Dogecoin [DOGE]. This was further proof that, while the altcoin market was ailing, Bitcoin Cash could serve as a safer bet.

The weekly chart showed a range formation between $272 and $624. A compelling argument in favor of the range was how the mid-range level at $448 has been respected as both a support and a resistance over the past year. More recently, it acted as resistance in May before flipping to support in June. This flip came after the weekly structure saw a bullish structure break after a move beyond the previous lower high at $420. This market structure break was accompanied by a rising OBV, indicative of steady buying volume. The RSI also climbed past neutral 50 in late April, signaling a shift in momentum towards the bulls. The $500-$530 region could serve as a resistance. It has done so in the past, and the $500 level was also a psychological resistance.

BCH recently hit a local high of $530 on the 1st of July. It is likely to surpass this level soon, as the lower timeframe charts, such as 4-hour, were also bullish. The Open Interest was rising, showing speculative conviction in BCH. Moreover, Bitcoin Cash has made a new high for the year 2025. The next key target sits at the range high of $640. And traders can expect the momentum to drive prices higher in the coming weeks.