Cryptocurrency
Analyzing Bitcoin Cash (BCH) Market Trends
Thursday. July 25 at 1:00 AM
1 min. readThe value of Bitcoin Cash (BCH), the cryptocurrency native to the peer-to-peer electronic cash system, has been on a downward trend recently. Currently priced at $370.21, BCH has experienced a 5% decline in the past week. Despite this, a key on-chain metric suggests that BCH may be undervalued, presenting a potential buying opportunity for traders. The Market Value to Realized Value (MVRV) ratio for BCH indicates that it is selling below its historical cost basis, with negative ratios for both the 30-day and 365-day moving averages. Negative MVRV ratios typically indicate undervaluation and offer a chance for investors to buy low and sell high. However, futures traders are showing a lack of confidence in BCH's price recovery, with a negative funding rate signaling bearish sentiments. If the current trend continues, BCH's price could potentially drop to $286, but a reversal in market sentiment could lead to a rally towards $388.