Bitcoin Cash (BCH) price shows signs of recovery and could reach $450 again. This potential rise is currently supported by investors moving away from selling. Bitcoin Cash is currently trading above the key support level at $430, which has historically signaled recovery and is expected to do so in the coming days.
What’s Happening with BCH?
BCH price potential is supported by BCH holders showing an upward trend in recent days. The Market Value to Realized Value (MVRV) ratio is still below the zero line. The MVRV ratio tracks investor gains/losses. Bitcoin Cash’s 30-day -8.1% MVRV indicates losses and likely accumulation. Historically, BCH has corrected at MVRV levels of -6% and -24%, marking this as an accumulation opportunity zone.
This signals that Bitcoin Cash price might see some increase. This is further evidenced by currently positive investor actions. When distributed according to the profitability of active addresses, most transactions are made by profit-seeking individuals.
Already profitable BCH holders make up only 6% of all active addresses, indicating that participation is not dominated by investors looking to sell their assets for profit.
BCG Chart Analysis
Bitcoin Cash price surpassed the critical 23.6% Fibonacci Retracement level set at $430. This level is crucial as it served as a bear market support base and historically provided recoveries when tested. Given the support from altcoin investors, the same outcome is expected this time. Potential rise could push BCH price just above the 38.2% Fibonacci retracement to $450.
This is a significant psychological support level and could push the rise further. However, a breach this month already failed, and another failed breach could send Bitcoin Cash back to $430. If Bitcoin Cash price falls below this line, it will likely drop to $410 or $400, invalidating the bullish thesis.
