BCH has recently exhibited some interesting technical phenomena worth paying attention to.

The price formed a lower shadow around 645, then was quickly pushed back up by large buy orders, creating a classic single-candle bottoming pattern. What does this usually indicate? The buying support at the bottom is not weak.

From on-chain data, the average holding cost of large investors is mostly concentrated in the 605-610 range. The recent low of 645 is very close to this area, indicating clear defensive behavior by large investors, with large buy orders appearing frequently. What does this imply? It suggests that large investors do not want the price to continue falling and may be brewing a rebound.

On the technical side, several signals are also worth noting: the price has stabilized above the main short-term moving averages, the MACD is about to form a golden cross, and the RSI has risen from the oversold area. Another effect of this correction is to clear out floating positions in the 640-660 range, turning the previous resistance at 660 into potential support.

Of course, the subsequent trend still depends on whether trading volume can effectively cooperate and whether the price can hold above the key level of 660. The market always contains uncertainties, and risk management should always come first.