Bitcoin Cash (BCH) price is among the most impressive altcoins in the crypto market, up by 25% in four days.
However, this might tickle investors’ greedy bones, as they could opt to sell their holdings for profit.
Bitcoin Cash Goes Big
Bitcoin Cash’s price rise intensified over the weekend as the altcoin made it to $450 today. The Bitcoin namesake and hard fork are currently testing a critical resistance that it could fail to breach.
Signs of the same are arising from the Relative Strength Index (RSI). RSI indicates that Bitcoin Cash (BCH) is approaching the overbought zone, standing inches away from the threshold of 70.0. This suggests that the recent upward trend may soon come to a stop.
As BCH nears this critical level, investors could move to secure their holdings. An overbought condition often signals a potential reversal or a period of consolidation.
Read More: How To Buy Bitcoin Cash (BCH) and Everything You Need To Know
The Market Value to Realized Value (MVRV) Ratio backs this theory. The MVRV ratio assesses investor profit and loss. Currently, Bitcoin Cash’s 30-day MVRV stands at 18%, indicating profitability and possible selling pressure.
Historically, Bitcoin Cash tends to correct when the MVRV is between 8% and 19%, often called the danger zone. This could lead to considerable profit taking.
BCH Price Prediction: Hitting the Brakes
Bitcoin Cash’s price has risen 25% in the last four days, and it is currently trading at $450. The altcoin is close to breaching the 78.6% Fib line, which acts as resistance at $471. However, the aforementioned factors will short-stop it.
This will likely pull BCH down to the 61.8% Fib line at $432, which is also known as the bull market support floor. Thus, a decline below this level is unlikely unless profit-taking intensifies among BCH holders.
Read More: Bitcoin Cash (BCH) Price Prediction 2024/2025/2030
On the other hand, a breach of the 78.6% Fib line could lead to a rise to $501. This would not only help the altcoin reclaim the losses it witnessed in June but also invalidate the bearish thesis.
Disclaimer
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