Parabolic rallies have been a source of happiness for investors battered by long-lasting bear markets. Many cryptocurrencies have seen gains of over 100%. Some have achieved these gains in a much shorter time. BCH is one of them, and it continues to incur losses close to 5% today. So, has the time come to sell BCH?
Bitcoin Cash (BCH)
In bear markets, having the appetite to buy at low prices is as important as having the will to sell at the right level. Otherwise, investors who see their wallets shrink after gains face a challenging psychology. One of the best things experienced crypto investors do is knowing when to say goodbye to their altcoins and being able to buy back at lower levels when necessary.
BCH, which approached $665, suffered massive losses in the last bear market. However, there were those who capitalized on the bottom and joined the recent rise at the right time. Now, after reaching a new annual high, investors have started to take profits.
The decline in the Average Coin Age indicates that BCH investors have begun to sell. The 30-day MVRV ratio is close to 30%. This shows that satisfactory profit zones have been reached for recent buyers. Normally, such high profitability (among short-term buyers) justifiably leads to price corrections.
BCH historically experiences a price correction when the MVRV data reaches around 14%. With the current rate at about 27% and the negativity in BTC prices likely to continue, we may see rapid sales.
BCH Price Prediction
We said the price could drop, but what dollar amount could it target? The altcoin, which rose to $665, reflects the excitement of the upcoming halving on Thursday. At the same time, CFTC’s view of it as a commodity is also a significant positive factor.
In the coming hours, the price may retreat to $625, and if it fails to hold this support, a drop to $572 is likely. The daily EMA is a strong support area, and if BTC does not see excessive selling, this pullback is expected to balance out investors with high profitability.
However, if the $650 and $625 support levels remain solid and BTC redirects its course to $73,777 and beyond, $700 could be tested.
