Bitcoin Cash Price Rally and Potential Correction ๐๐
Bitcoin Cash (BCH) recently experienced a significant 90% surge within just ten days, propelling the altcoin from $358 to $678. However, this rapid rally may soon pause, with BCH likely encountering corrective movements in the near future.
Bitcoin Cash Holders Eye Profit-Taking ๐ฐ
- Bitcoin Cash’s surge past the $650 mark triggered a wave of profit-taking among holders, leading to a shift in sentiment as evidenced by the Mean Coin Age metric.
- The Mean Coin Age metric measures the average age of coins in circulation, indicating market activity levels and potential selling pressure based on the period coins have been held.
- Increases in Mean Coin Age signal strong conviction, while decreases suggest coins are changing hands among different addresses.
Bitcoin Cash Market Value Analysis ๐งฎ
The trend of profit-taking among BCH holders is further supported by the Market Value to Realized Value (MVRV) ratio, a key indicator used to analyze investor profit and loss.
- The current 30-day MVRV ratio for Bitcoin Cash stands at 27.65%, indicating profits for recent buyers and implying a potential selling trend.
- Historically, BCH corrections have occurred within the 10%-21% MVRV range, referred to as the danger zone for investors.
Bitcoin Cash Price Forecast: Brace for a Correction ๐
Following a strong uptrend, Bitcoin Cash is currently in the correction phase, with expectations of substantial downside movement in the near term. Here are some key price projections:
- At the current price of $665, BCH is likely to retrace back to $650 and further to $625 as profit-taking ensues.
- A breach below $625 could lead to a drop to $572, aligning with the 50-day Exponential Moving Average (EMA) and suggesting a potential 14% pullback.
Opportunities for BCH Rebound and Resistance Levels ๐
While a corrective phase is expected, Bitcoin Cash has strong support levels at $650 and $625, which could potentially cushion the decline and limit the downside risk. If these levels hold, BCH might have the opportunity to bounce back and invalidate the bearish scenario, potentially aiming for the $700 mark.
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