Bitcoin Cash (BCH) surged roughly 26% over 24 hours to trade above $340 on Wednesday, emerging as one of the cryptocurrency market’s strongest performers after CME Group unveiled plans to launch regulated BCH futures.
The announcement triggered an immediate reaction, with Bitcoin Cash reportedly climbing approximately 14% within an hour before extending its advance toward $350.
The rally was also reinforced by a short squeeze and renewed expectations that Grayscale could convert its existing Bitcoin Cash Trust into an exchange-traded fund.
Together, those catalysts have brought the $388 resistance and a potential move toward $450 into focus.
CME futures announcement sends BCH higher
CME Group announced on September 22 that it plans to introduce Bitcoin Cash and Uniswap futures on October 19, pending regulatory review.
The exchange will offer two BCH contract sizes.
Its standard futures contract will represent 250 BCH, while the Micro Bitcoin Cash futures contract will cover 25 BCH.
Providing both products allows traders to choose a contract that more closely matches their portfolio size and risk-management needs.
Larger institutions may use the standard contract, while the Micro version could suit smaller firms and traders seeking more precise exposure.
The contracts would give hedge funds, asset managers, trading firms and other professional investors a regulated method of gaining exposure to BCH or hedging existing positions without directly holding the cryptocurrency.
CME said growing demand for institutional-grade risk-management products covering liquid altcoins helped prompt the expansion.
Its existing crypto derivatives business recorded an average daily volume of approximately 279,800 contracts during the first half of 2026, representing about $8.3 billion in notional value.
That established market could provide BCH with greater visibility among traditional financial institutions.
However, the planned launch remains subject to regulatory review, and demand for the contracts will not become clear until trading begins.
The CME announcement arrived less than two weeks after Grayscale Investments advanced plans to convert its existing Bitcoin Cash Trust into an exchange-traded product.
Grayscale filed an amended registration statement with the US Securities and Exchange Commission on September 11.
The company intends to rename the product the Grayscale Bitcoin Cash Trust ETF if the required regulatory and listing conditions are satisfied.
The proposed fund would trade on NYSE Arca under the ticker BCHG and hold Bitcoin Cash as its underlying asset.
An ETF conversion could make BCH exposure more accessible through traditional brokerage accounts while potentially improving the product’s liquidity.
It could also attract investors who are unwilling or unable to purchase and store the cryptocurrency directly.
The filing does not mean the conversion has been approved. Until the SEC completes its review and the necessary conditions are met, the proposed ETF remains another potential catalyst rather than an active source of spot demand.
Still, its timing contributed to the positive narrative surrounding Bitcoin Cash as traders reacted to the possibility of both regulated futures and an exchange-traded product.
Derivatives liquidations added momentum to Bitcoin Cash’s rally as the price broke through resistance.
CoinGlass data shows approximately $7.44 million in BCH positions were liquidated over 24 hours.
Short sellers accounted for about $5.16 million of the total, while long liquidations reached approximately $2.88 million.
That means nearly three-quarters of the liquidated positions belonged to traders betting that BCH would decline.
The imbalance was also evident over the latest four-hour period. Bitcoin Cash recorded around $2.06 million in liquidations, including $1.58 million from short positions.
When leveraged short positions are liquidated, traders or exchanges must buy back the asset to close them.
That forced purchasing can push prices even higher, triggering further liquidations and creating a feedback loop known as a short squeeze.
This mechanism likely amplified the initial reaction to CME’s announcement.
However, liquidation-driven rallies can lose momentum once bearish positions have been cleared, leaving the market dependent on fresh spot buying to sustain the advance.
Bitcoin Cash targets $388 before $450
Bitcoin Cash’s longer-term technical structure has improved after its strong rebound from the $175–$200 accumulation region.
That zone has attracted buyers repeatedly since 2020, establishing it as a significant long-term support area.
The latest recovery has now carried BCH back above its 20-period exponential moving average on the two-week chart, located near $340.
Holding above that average would strengthen the case for a broader trend reversal. The next technical obstacle is the 50-period EMA near $388.
A decisive close above $388 could allow BCH to extend its rally toward the 0.236 Fibonacci retracement level at approximately $449.90.
That makes the $450 region the next major upside target and represents a potential gain of around 20% from the upper-$300 area.
The bullish scenario depends on BCH maintaining the breakout above $340 and attracting continued buying after the short squeeze fades.
If the token is rejected near the 50-period EMA and falls below $340, the attempted trend reversal could lose momentum.
Such a move would likely delay the $450 target and expose Bitcoin Cash to another period of consolidation.
The post Bitcoin Cash surges 26% as CME futures plan sparks short squeeze appeared first on Invezz
