Summary
TLDR: Bitcoin Cash price surged 90% in 10 days, but corrections are expected as investors look to sell due to profit-taking sentiment. Mean Coin Age and MVRV ratio indicate potential selling pressure. A 14% correction is possible, with support levels at $650 and $625. Falling below could lead to a decline to $572, but a bounce back to $700 is also possible.
Key Points
1. Bitcoin Cash (BCH) price experienced a significant 90% rally in just ten days, soaring from $358 to $678.
2. Bitcoin Cash investors are looking to sell as the price crossed $650, leading to profit-taking sentiments among holders. This is evident from the Mean Coin Age metric, which reflects changing conviction levels based on the age of coins in circulation.
3. The Market Value to Realized Value (MVRV) ratio for Bitcoin Cash is currently at 27.65%, signaling profit for recent buyers and a potential upcoming correction. Historical data suggests that corrections typically occur within the 10%-21% MVRV range, indicating a possible 14% drawdown for BCH.