The cryptocurrency markets have been exhibiting a high degree of volatility, with an upward trajectory amid potential corrections. Even in bullish market periods, it is common for alternative coins to undergo losses of over 30%. Which altcoin is at risk of dropping to the $400 levels amid this scenario?

BCH Price Analysis

Coinbase has made a submission to the CFTC that includes DOGE, LTC, and BCH for approval as commodities starting April 1st, allowing the launch of derivative products through Coinbase without SEC intervention. This move has sparked increased interest in these three altcoins.

Recently, BCH's price surged to $553 from below $500, a notable recovery from its previous low of $87 during the bear market. Despite skepticism from Vitalik, some traditional investors have shown faith in BCH's price potential, leading to significant gains of over 500% today.

At the time of writing, BCH's price is at $530, showing a 10% increase. Meanwhile, Bitcoin is still recovering from the Coinbase FUD, with performance remaining weaker despite a rise in ETF channel entries compared to previous days.

BCH Price Forecast

The 30-day MVRV for Bitcoin Cash is at approximately 10%, signaling a strong sell trend historically. Typically, BCH corrections kick in when the MVRV indicator ranges between 7% and 17%, presenting a profitable zone for investors. If selling pressure intensifies, a swift decline to $501 and $448 levels could be witnessed.

In an adverse scenario where the second zone is breached, a price drop to $400 and $378 may occur, erasing a considerable portion of the gains. Nevertheless, the news around April 1st holds significance, particularly if the CFTC greenlights BCH derivative products, potentially positioning these three "commodity-stamped" altcoins as safe-haven assets, appealing to other investors.

Amid ongoing regulatory challenges with Binance and Coinbase lawsuits involving nearly 50 cryptocurrencies, the SEC's stance remaining firm, investors might opt for alternatives aligned with the CFTC rather than the SEC.

Source: Bitcoin Cash Faces Potential Drop to $400 Levels via COINTURK NEWS