Bitcoin Cash: Undervalued Yet Traders Remain Skeptical
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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.
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.
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