BTC is down just 0.3% over 24 hours, while BCH has plunged 6.3%—20 times the broader market’s decline. This kind of sharp, market-independent drop is most likely driven by sentiment-based selling and doesn’t reflect the fundamentals. The current price of 247.90 has already fallen below the previous consolidation range, putting it in oversold territory in the short term.
Strategy: Scale into long positions in the 238–243 range, with a stop-loss at 234 (if it falls below that level, the trend is broken, so stay out). Set the first take-profit target at 262 and the second at 268, corresponding to a recovery of half to 60% of this decline. Keep the position size under 15% of your total portfolio, and don’t use leverage on any single trade. The rationale is that selling volume tends to dry up after a sharp drop, so look for a rebound, not a reversal.
For this kind of oversold bounce, $BCH how many times do you usually scale in?
Strategy: Scale into long positions in the 238–243 range, with a stop-loss at 234 (if it falls below that level, the trend is broken, so stay out). Set the first take-profit target at 262 and the second at 268, corresponding to a recovery of half to 60% of this decline. Keep the position size under 15% of your total portfolio, and don’t use leverage on any single trade. The rationale is that selling volume tends to dry up after a sharp drop, so look for a rebound, not a reversal.
For this kind of oversold bounce, $BCH how many times do you usually scale in?