Bitcoin Cash is up more than 30% from its lowest level so far this year and is almost entering overbought territory. However, BCH enthusiasts that might be worried about missing out still have a chance at catching the boat.<\/p>\n
The latest bullish relief may have provided some relief from the bears. However, zooming out reveals that the latest upside is rather minuscule compared to the extent of BCHs downside.<\/p>\n
To put it into perspective, Bitcoin Cash needs at least a 10x move to recover back within its previous all-time high (ATH) range.<\/p>\n
The alt is still trading below its January 2020 levels. This highlights the extent of its sell-off. It also demonstrates why BCH is still oversold.<\/p>\n
It simply means that investors still have a chance at a healthy entry point for the next bullish phase.<\/p>\n
While this might be favorable for long-term HODLers, things are less certain for short-term traders.<\/p>\n
BCHs $130.6 press-time price of 24 July is still far from the next resistance zone.<\/p>\n
However, it has experienced increased friction after crossing above the 50-day moving average.<\/p>\n
BCH showed signs of a sell-off from 20 June to 23 June and this was backed by some outflows according to the MFI.<\/p>\n
However, it continues to show an affinity for the upside but on-chain metrics suggest that whales might be anticipating a cooldown, especially after the latest rally.<\/p>\n
However, it is worth noting that BCH is not yet oversold. Hence, there is a chance that it might continue rallying.<\/p>\n
Some of Bitcoin Cashs metrics already point toward a potential downside. For example, the supply held by whales has declined significantly in the last 30 days.<\/p>\n
Meanwhile, its MVRV ratio did the opposite by climbing. At press time, it was at its highest level. This means many traders who bought the dip are in profit.<\/p>\n
The price uptick despite the outflows from whales suggests that the bulls were supported by strong retail demand.<\/p>\n
However, retail buying pressure might not survive long without support from larger addresses.<\/p>\n
Furthermore, 24-hour whale transaction activity and active addresses dipped significantly in the last four days.<\/p>\n
It is uncharacteristic of whales to buy higher, thus they will likely wait for another price drop to buy at a more favorable entry point.<\/p>\n
This is assuming that retail volume runs out of steam, but many of the buyers in this segment might be long-term investors, hence raising the floor price.<\/p>\n
But, there are always ups and downs, and the chances of a wave of FUD pushing and wiping out some of the latest gains are also significantly high.<\/p>\n
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Bitcoin Cash is oversold but heres how traders can manage risk - AMBCrypto News<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Bitcoin Cash is up more than 30% from its lowest level so far this year and is almost entering overbought territory. However, BCH enthusiasts that might be worried about missing out still have a chance at catching the boat Continue reading