The BCH surge yesterday may look on the surface like it was driven by a technical upgrade and expectations of a $500 million financing round. But if you think about it— the financing won’t actually close until December this year, so why is this news being hyped up so much right now? I smell something fishy.

Let’s talk about the technical upgrade first— that’s real, solid bullish news, and it’s definitely positive long-term. But do you really think the $500 million will be invested all at once? Don’t be naive. Real capital always builds positions in batches and will never chase after the price at post-news highs.

So this sharp pump is very likely the big players using good news as an opportunity to offload their bags. Pump the price → retail investors buy in → price drops, big players accumulate again— same old trick. The overbought signal is already obvious, and we’ll definitely see more volatility before December.

My take? Still bearish.
515 below is a key support— if it doesn’t hold, things could get ugly.
565–580 above is the first resistance zone; if it breaks, then watch for strong resistance at 615.

The coin will go up, but don’t rush to chase it. Wait for a pullback, wait for the right opportunity.

BCH-3.58%

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