BCH Price Hovers Near Support as Traders Bet on Mean-Reversion Trade

The price of BCH is currently trading below all significant moving averages and has been doing so for months. This suggests that the market has systematically distributed at every compression rally, leading to a downtrend.

However, momentum has flatlined, with the MACD histogram at dead zero after sustained negative readings. The Stochastic oscillator is also in oversold territory on a near-term basis.

The Bollinger Band picture shows that price has kissed the lower band, which historically resolves with either a mean-reversion bounce or a full breakdown. The derivatives market is indicating a 64% long position against 35.7% short, suggesting a deliberate directional bet by top traders.