Bitcoin Cash (BCH) is showing renewed strength as it trades near the $600 level, signaling the possibility of a breakout on the 4-hour chart. After a period of consolidation, market data suggests that both retail and large-wallet investors are increasing their exposure to BCH, providing the momentum needed for a potential upward move.

At the time of writing, BCH is trading around $600, representing a 3% gain on the day. Technical charts point to a symmetrical triangle formation on the 4-hour timeframe, a pattern typically associated with breakout potential once the price decisively closes above the upper trendline.

Retail Interest Drives BCH Futures Open Interest

The derivatives market is highlighting renewed bullish sentiment in Bitcoin Cash. Over the past 24 hours, the BCH futures Open Interest (OI) has risen by 5.56%, reaching $454.51 million. This increase in OI reflects more long positions being taken by traders, signaling growing confidence in Bitcoin Cash’s near-term prospects.

Alongside this, the OI-weighted funding rate has climbed from 0.0039% to 0.0067%, suggesting that traders are willing to pay higher costs to maintain their long positions. The funding rate rise often correlates with positive sentiment and can amplify short-term rallies.

Additionally, the Long/Short ratio currently stands at 1.1088, indicating a larger number of active long positions compared to short positions. This further reinforces a risk-on sentiment among retail traders, creating favorable conditions for BCH to challenge key resistance levels.

Large-Wallet Investors Bolster Market Optimism

Beyond retail activity, large BCH holders are showing confidence in the market. Data from Santiment shows that profit-taking among Bitcoin Cash investors has decreased, with Network Realized Profit/Loss (NRPL) dropping to 17.2K BCH. This decline in selling pressure highlights a growing belief in the token’s potential to sustain an upward trend.

Over the past two weeks, NRPL has remained below 3 million BCH, indicating a period of consolidation following a volatile stretch in late September. In parallel, the supply of BCH held in profit has risen from 83.75% on September 30 to 88.23% on Friday.

Large-wallet holders, defined as wallets with 10,000 to 1 million BCH tokens, now control 8.76 million BCH, up from 8.69 million BCH at the end of August. This increase in accumulation by whales adds further bullish weight, suggesting that major players anticipate further gains in the short to medium term.

Symmetrical Triangle Pattern Hints at Breakout Potential

Bitcoin Cash’s technical setup shows a clear symmetrical triangle pattern on the 4-hour chart. Currently trading near $600, BCH is testing the resistance trendline of this formation. A decisive close above this level could trigger a breakout rally, potentially propelling the price toward previous highs.

The first upside target for BCH could be the $615 peak recorded recently, followed by the 1.272 Fibonacci retracement level at $628. This level is drawn from the $615 peak to the recent low at $568, providing a logical path for the next leg of the rally.

Momentum indicators support a bullish scenario. The Relative Strength Index (RSI) has climbed to 64, indicating room for further upside before BCH enters overbought territory. Similarly, the Moving Average Convergence Divergence (MACD) has crossed above its signal line, signaling a bullish trend reversal on the short-term chart.

On-Chain Metrics Suggest Sustained Recovery

On-chain metrics further reinforce the case for a bullish outlook. The decline in profit-booking behavior among BCH holders, coupled with increased supply retention, indicates lower selling pressure and heightened confidence among investors.

Meanwhile, the activity of large-wallet holders points to growing accumulation, which often precedes strong price rallies. As BCH continues to attract both retail and institutional attention, market participants may find renewed buying opportunities in the current consolidation phase.

Conclusion: BCH Positioned for Upside Momentum

Bitcoin Cash is currently at a critical juncture. With retail demand rising, derivatives market indicators turning positive, and large-wallet investors holding steadily, BCH appears poised for a potential breakout. The symmetrical triangle on the 4-hour chart, combined with supportive on-chain and momentum data, suggests that the path of least resistance may be to the upside.

Traders should watch for a decisive close above $600, as this would validate the triangle breakout pattern and set the stage for further gains toward $615 and $628. Meanwhile, short-term technical signals like the RSI and MACD continue to favor bullish momentum.

While the cryptocurrency market remains inherently volatile, Bitcoin Cash’s improving fundamentals and growing market interest indicate that bulls may be ready to assert control in the near term.