Bitcoin Cash Climbs on Whale Activity and Positive Technical Patterns, Despite Weak Network Engagement

Bitcoin Cash (BCH) remains in the spotlight as significant whale transactions and bullish technical patterns help sustain its price momentum—even though network activity shows signs of cooling and some recent transfers have raised eyebrows.

As of July 5, BCH was priced at $482.54, reflecting a slight 0.23% dip over the previous 24 hours, according to CoinDesk Research’s technical analysis model. Meanwhile, the broader crypto market, tracked by the CoinDesk20 Index (CD20), edged higher by 0.27% during the same period.

Earlier in the month, on July 1, BCH surged to $526.50—its highest point in eight months—buoyed by increased whale buying, market enthusiasm, and speculative trading. Over the past quarter, BCH has rallied over 75%.

During this price run, BCH briefly surpassed $528 as daily trading volumes tripled, exceeding 120,000 tokens traded in just a single day. Much of this momentum stemmed from traders shifting capital into mid-cap crypto assets, looking for higher returns beyond large-cap coins as broader market sentiment improved.

Despite the rally, BCH’s on-chain fundamentals remain relatively weak. Daily active addresses have dropped to levels not seen in six years, indicating that the price surge is likely fueled more by speculation than genuine network use. Nonetheless, technical signals remain favorable. In late June, BCH’s hourly chart produced a golden cross—an event where the 50-day moving average crosses above the 200-day moving average—often interpreted as a bullish sign.

Fueling further speculation, open interest in BCH derivatives jumped 27.4% over the past week, reaching $578 million. Analysts are watching the $478 to $508 range as a crucial support area that could help stabilize any downward corrections.

On July 4, blockchain analytics firm IntoTheBlock reported a notable 122.45% spike in large BCH transactions over $100,000. In total, these whale moves accounted for 957,440 BCH worth approximately $482 million, echoing similar activity seen in February, May, and late June—times when significant price movements followed.

Curiosity intensified on July 5, when a single 10,000 BCH transaction (around $5 million) was recorded just before an enormous transfer of 80,000 dormant bitcoin (BTC) valued at over $8.5 billion. Some analysts believe the BCH transfer might have served as a test run for wallet functionality before executing the massive BTC transaction, which marked the largest movement of dormant bitcoin in more than a decade.

Meanwhile, on July 1, the Bitcoin Cash Foundation announced the rollout of Knuth v0.68.0, the latest upgrade to BCH’s node software. The new release consolidates the codebase and lays the groundwork for future improvements aimed at enhancing UTXO efficiency. While there haven’t been any significant adoption announcements this week, community-led projects continue exploring BCH’s use in micropayments and NFTs. Roger Ver, a prominent Bitcoin Cash advocate, remains vocal in promoting BCH as a scalable alternative to bitcoin, although his recent endorsements have yet to spark new institutional interest.

Technical Analysis Snapshot

• From July 4 at 15:00 to July 5 at 14:00, BCH fluctuated within a $7.52 range (1.57%), trading between $481.83 and $489.35.
• Strong support was observed at $481.83, with heightened activity during the 04:00 hour on July 5.
• Resistance developed near $489.43, where repeated selling pressure limited upward momentum.
• Between 13:06 and 14:05 UTC on July 5, BCH advanced $1.20 (0.25%), briefly climbing above $483.25 on increased volume.
• Toward the end of the trading session, support held steady between $483.35 and $483.45, with the session high hitting $483.81 at 14:03.

Although on-chain signals remain lackluster, heightened whale participation and bullish technical indicators keep Bitcoin Cash firmly on traders’ watchlists as they anticipate the next market move.