Bitcoin Cash (BCH) is preparing to break out as the Futures market supports a bullish trend.

As of the time of writing this article on Thursday, the price of Bitcoin Cash (BCH) is fluctuating steadily around 560 USD, approaching a significant resistance zone. The on-chain data remains neutral at the moment, but the futures market has begun to show positive signals, reflecting the optimistic sentiment spreading among traders. Technically, a decisive candle close above the level of 565.1 USD could confirm the return of the short-term uptrend, opening up prospects for a stronger bounce back of BCH.

Bullish signals on the futures market

Data aggregated from CryptoQuant shows that the outlook for Bitcoin Cash (BCH) is gradually improving. The spot market is currently maintaining a balanced state, while the “whales” in the derivatives market are starting to ramp up activity — a signal indicating the potential emergence of a new bounce back.

Source: CryptoQuantAccording to the OI-Weighted Funding Rate index from Coinglass, the number of traders betting on the scenario of a decreasing BCH price is currently lower than those betting on an increase. Notably, this index has shifted to a positive level, reaching 0.0007% on Thursday, meaning that Long positions are paying fees to Short — a traditional sign that the upward trend is regaining dominance. In the past, whenever the funding rate shifts from negative to positive, the BCH price often records significant bounce backs.

The funding rate of BCH | Source: CoinglassIn addition, the Long/Short ratio of BCH on Coinglass is currently at 1.14, the highest in over a month, reflecting the increasingly optimistic sentiment of traders towards this coin.

Long/Short ratio of BCH | Source: Coinglas## Bitcoin Cash price forecast: BCH could break out if it exceeds 565.1 USD

In recent days, the price of Bitcoin Cash (BCH) has continuously tested the resistance zone around the 78.6% Fibonacci retracement level — measured from the April low at 249.4 USD to the September high at 651 USD — corresponding to 565.1 USD. At the same time, this coin is also receiving solid support from the 50-day EMA around 542.3 USD. At the time of writing, BCH is trading slightly above this important resistance level, indicating that the bulls are still in control.

If BCH closes above the mark of 565.1 USD on the daily timeframe, the upward trend is likely to be reinforced, opening up the opportunity towards the peak of 651 USD established on September 18.

BCH/USDT daily chart | Source: TradingViewTechnically, the RSI on the daily chart reached 59, surpassing the neutral threshold of 50 — a sign that bullish momentum is strengthening. At the same time, the MACD indicator recorded a bullish cross( last week, sending a clear buy signal. The green histogram bars are expanding above the zero line, further reinforcing this positive trend.

However, if a correction occurs, the 50-day EMA at 542.3 USD will be an important level to watch, where the bulls may once again defend the bullish trend of BCH.

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