BTC price turned back from the $70,000 mark after the US markets opened and lost about $800. As of the time of writing, it continues to hover above $69,300. On the other hand, BCH, born as a Bitcoin fork, may show volatility in the opposite direction this time. Current signals suggest we might see a decline in price.
Bitcoin Cash (BCH) Analysis
Bitcoin Cash’s price exceeded $450 and reached a key resistance level. However, under current conditions, it does not seem possible to overcome this resistance. The RSI also confirms potential resistance rejection. The Relative Strength Index, approaching the overbought zone, is at the 70 mark, indicating an overbought signal. With the continuation of the upward trend, the increasing RSI now shows that investor demand may turn to selling.
The Market Value to Realized Value (MVRV) Ratio is another detail supporting the decline scenario. According to historical data, when the MVRV ratio hovers between 8% and 18%, we see increased selling pressure. Now this index is at 18%. In summary, the danger bells are ringing for bulls on the MVRV side as well. And of course, the ongoing weakness in BTC price could also accelerate sales.
BCH Price Prediction
The price, which increased by 25% in just 4 days, climbed to the $450 level. BCH price faces strong resistance at $471. However, the factors mentioned in the first section may increase the appetite of investors looking for short-selling opportunities here. Bitcoin Cash will thus retreat to the Fib support at $432.
If profit sales do not accelerate or the BTC price does not fall below $68,000, it is not expected that the $432 support will be easily lost. As a strong support level, it may be reasonable to maintain this at least for a while.
So, what if BTC quickly surpasses $70,000 and demand for BCH accelerates? In this case, we could see the price reach the next resistance at $501 with closures above the $471 resistance. In the reversal scenario, new peaks will be opened with the compensation of the losses accelerated in June. Thus, the decline scenario will also be shelved.
In the coming hours, the direction of volume in the ETF channel and whether the Fed meeting will push investors back to caution will also be decisive.
