Bitcoin Cash (BCH) is riding the wave of increase as trading demand returns.

The price of Bitcoin Cash (BCH) recorded a slight increase of 1% on Tuesday, extending a three-day winning streak. Derivative market data shows that capital is flowing strongly into BCH futures contracts, indicating that the bulls are in control. Technically, the hard fork of Bitcoin (BTC) is reinforcing the upward momentum, opening up prospects for further price advances.

Market stability drives demand from investors

The attention of individual investors towards Bitcoin Cash (BCH) is increasing, as the picture of the potential end to the more than 40-day government shutdown in the US becomes clearer. According to data from CoinGlass, the open interest (OI) of BCH futures contracts has reached 335.90 million USD, up 10.24% in just 24 hours, reflecting a trend leaning towards the bulls and an increasing level of risk in the trading community.

Notably, the funding rate based on OI has also increased to 0.0074% from -0.0032% at the beginning of the day, indicating that traders are willing to pay additional fees to maintain long positions. This is a clear signal of strong confidence in the short-term upward trend of BCH.

BCH derivative data | Source: CoinGlass## Technical perspective: Can Bitcoin Cash price reach 600 USD?

The recovery of Bitcoin Cash on the 4-hour frame is forming a solid support line. BCH continues to surpass the psychological level of 500 USD and approaches the resistance level of 527 USD, determined from the peak on October 15.

A significant close above this mark could pave the way for BCH to challenge the resistance line above, connecting the peaks of October 5 and October 28, near 557 USD. If the upward momentum continues and breaks this trend line, the peaks oscillating around 580 USD and 613 USD will become the nearest resistance levels.

BCH/USDT chart on the 4-hour timeframe | Source: TradingViewThe momentum indicators on the 4-hour timeframe are reflecting strong bullish momentum. The MACD line along with the signal line maintains an upward trend, crossing above the zero line, while the RSI at 63 indicates that buying pressure is steadily increasing, reinforcing BCH's recovery.

On the downside, the 50-period EMA at 505 USD and the psychological level of 500 USD serve as important support levels. If BCH falls below 500 USD, the breakout opportunity will be invalidated and the risk of revisiting the support level of 460 USD formed on Wednesday will be present.

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