Bitcoin Cash (BCH) Currently Undervalued, On-Chain Metric Flashes Buy Signal
The value of BCH, the native coin of the peer-to-peer electronic cash system, Bitcoin Cash, has declined steadily in the past few weeks. Exchanging hands at $370.21 as of this writing, the altcoin’s value has plummeted by 5% in the last seven days.
According to readings from a key on-chain metric, BCH may be undervalued at its current value. It, therefore, offers a buying opportunity for those looking to trade against the market .
Bitcoin Cash Presents a Buying Opportunity, but Futures Traders Remain Skeptical
According to BCH’s market value to realized value (MVRV) ratio, it currently sells at a price lower than its historical cost basis, making it undervalued.
The coin’s MVRV ratio is negative when assessed over various moving averages. Specifically, BCH’s MVRV ratios for the 30-day and 365-day moving averages are -3.07% and -11.15%, respectively.
An asset’s MVRV measures the ratio between its current price and the average price at which all its coins or tokens were acquired.
Read More: 7 Best Bitcoin Cash (BCH) Wallets in 2024
Analysts deem an asset overvalued when its value is above one. This is because its current market value is significantly higher than the price at which most investors acquire their holdings.
On the other hand, an MVRV ratio below zero suggests that the market value of the asset in question is below the average purchase price of all its tokens in circulation. When this occurs, the asset is said to be undervalued.
Negative MVRV ratios offer a buying opportunity because the asset is deemed to trade below its cost basis. Therefore, traders can buy at a lower price and hope to sell higher.
However, BCH’s futures traders continue to demand short positions, indicating their lack of confidence in the coin’s price recovering soon.
According to Coinglass’ data, BCH’s funding rate has been significantly negative since the beginning of July. As of this writing, it is -0.02%.
When an asset’s funding rate is negative, it signals a spike in the demand for short positions. This reflects bearish sentiments, as it means that there are more traders expecting the asset’s price to fall than traders buying the asset with the expectation of selling at a higher price .
BCH Price Prediction: Pain Lies Ahead
BCH fell closed below its 20-day exponential moving average (EMA) on Tuesday, confirming the possibility of a continued decline.
An asset’s 20-day EMA measures its average price over the past 20 trading days. When an asset’s price falls below this key moving average, it suggests a decline in buying pressure and an uptick in coin sell-offs.
If this trend persists, more downward pressure will be put on BCH’s price, which may drop to a six-month low of $286.
Read More: Bitcoin Cash (BCH) Price Prediction 2024/2025/2030
However, if the current trend reverses and the demand for BCH spikes, its price may rally toward $388 .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Tether’s U.S. Treasury holding approaches record high of $120B
Share link:In this post: Today, Tether published its Q1 2025 attestation report prepared by BDO, confirming total exposure in U.S. Treasuries approaching $120B. Tether also reported over $1B in operating profit from traditional investments during the quarter, driven by solid performance in its U.S. Treasury portfolio. The milestones reinforced the company’s conservative reserve management strategy and highlighted its growing role in distributing dollar-backed liquidity at scale.
Automakers like Ford in solid April sales driven by panic buying amid tariff worries
Share link:In this post: Consumers rushed to buy vehicles on fears of potential price hikes due to the Trump tariffs. While there was strong demand which started in March, this started to wane towards the end of April. For Ford, it reported a 16% sales increase in April.
Arbitrum offers as much as $100k per report to snitch on wasteful DAOs
Share link:In this post: Arbitrum is offering up to $100,000 in ARB tokens to community members who report DAO grant misuse. The “Watchdog” program encourages confidential whistleblowing via the open-source platform, GlobaLeaks. Severity of violations determines the reward, with a funding cap of 400,000 ARB.

Meta, Microsoft earnings beat send stocks higher
Big Tech pulled US indexes back into the green Thursday, as investors waited for two more Mag 7 first-quarter reports after the bell
Trending news
MoreCrypto prices
More








