Bitcoin Cash: Undervalued Yet Traders Remain Skeptical

Bitcoin Cash (BCH) has seen a steady decrease in value recently, currently trading at $373 - a 2.4% drop in the past 24 hours.

Despite this downturn, recent data suggests BCH might be undervalued at its current price, potentially offering a buying opportunity for traders.

The coin’s Market Value to Realized Value (MVRV) ratio indicates BCH is priced below its historical cost basis. Specifically, BCH’s MVRV ratios for the 30-day and 365-day averages are -3.07% and -11.15%, respectively.

A negative MVRV ratio signals that BCH’s market value is less than the average price paid by investors, suggesting it could be a good buy.

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However, BCH futures traders remain cautious. The negative funding rate of -0.02% since early July reflects a stronger preference for short positions, indicating bearish sentiment among traders who anticipate further price declines.

BCH’s recent fall below its 20-day exponential moving average (EMA) suggests a potential continued drop. This trend could push BCH’s price down to a six-month low of $286 if selling pressure persists.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.