Summary
TLDR: Bitcoin Cash (BCH) has experienced a significant drawdown after crossing $500, but whale investors are accumulating more, suggesting a potential recovery. If BCH can hold above $344, it may bounce back to $501, but a drop below $300 could invalidate the bullish thesis. The Relative Strength Index (RSI) is already falling into the bearish zone, indicating a potential drawdown. Always conduct your own research before making financial decisions.
Key Points
1. Bitcoin Cash (BCH) has experienced a significant drawdown after surpassing the $500 mark, with a single-day correction exceeding 10%.
2. Despite the price decline, indicators suggest that BCH may not be headed for a crash, as whale addresses holding between 100,000 to 1 million BCH have been consistently adding to their wallets.
3. The Market Value to Realized Value (MVRV) ratio for BCH is at -10.56%, indicating a potential accumulation phase for both whale and retail investors. This “opportunity zone” could lead to a price recovery for BCH, with a next major support line at $344 coinciding with the 100-day Exponential Moving Average.