【$BCH Signal】Oversold Rebound Play! 1H RSI Bottom Divergence, Watch for Pullback Confirmation

$BCH The 1H timeframe just experienced a waterfall decline. Currently, the price is oscillating narrowly around 540. RSI(1H) has dropped to 27.92 into the oversold zone, indicating a technical rebound demand. Although the 4H level broke below the EMA20, the price is close to the previous dense trading zone (530-540), and open interest (OI) remains stable with no signs of panic selling. This looks more like a leveraged long squeeze rather than a main force dump. On the 1H chart, there are potential bullish divergence signs between price and RSI, suggesting a short-term rebound is imminent.

🎯Direction: Long (Buy the dip)

🎯Entry/Order: 538.5 - 540.5 (Reason: Support zone of the previous 1H candle lows, combined with dense buy orders on the order book)

🛑Stop Loss: 532.0 (Reason: Break below yesterday’s 4H major low of 537.34 invalidates the rebound structure)

🚀Target 1: 550.0 (Reason: Initial resistance at 20 EMA on 1H and the previous small platform)

🚀Target 2: 560.0 (Reason: Strong resistance at 20 EMA on 4H, also the start of the downtrend)

🛡️Trade Management:

- Position size suggestion: Light position (Reason: The 4H trend remains weak, this is a counter-trend rebound with higher risk)

- Execution strategy: After reaching Target 1, move the stop loss to the entry price (break-even). For the remaining position, look toward Target 2. If the price stalls around 550, consider taking partial profits early.

Deep Logic: After a sharp decline, market sentiment is extremely pessimistic, but funding rates have turned negative (-0.0027%), and OI remains stable, indicating the short squeeze may be nearing its end. Order book data shows buy depth (bid_ask_ratio_depth=1.36) slightly stronger than sell side, with dense orders in the 538-540 zone forming a short-term defense line. The 1H RSI is severely oversold, and with the price consolidating in a key area, this is a classic short-term rebound setup. The key question: Is this a continuation of the downtrend or a short-term bottom? We bet on the latter but must strictly set a stop loss.

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