Price Bitcoin Cash (BCH) may recover in the coming trading sessions if investors give the token support
A number of on-chain indicators promise a possible recovery in the value of BCH. In particular, this is indicated by the metrics related to the accumulation and hodling of the asset.
Bitcoin Cash investors are optimistic
Bitcoin Cash is popular fork Bitcoin, which appeared in 2017 and works on an algorithm Proof of work (PoW). Now, investor behavior and general market signals point to the possibility of a recovery in the asset’s value.
The distribution of active addresses by yield shows that investors who are sitting in profit are not very active right now. Their participation in the network is only 6% of all active addresses. This is a good sign as it means that funders are not looking to sell their assets immediately. Therefore, more than 75% of BCH holders are in profit, but very few of them are trying to lock in the profit.
This could help the price if investors begin to accumulate, as signaled by the market-to-realized value (MVRV) ratio. This indicator evaluates the profit and loss of funders. Bitcoin Cash’s 30-day MVRV is currently -16%, indicating losses. This could potentially lead to increased buying pressure.
In the case of BCH, MVRV values in the range between -9% and -25% usually signal the beginning of recovery rallies and are considered a zone of favorable opportunities for accumulation.
As BCH holders begin to replenish their wallets, the value of the token may recover.