BCH shows bullish signals around the 623 level

Based on recent technical analysis, Bitcoin Cash (BCH) is currently showing notable signs of recovery after testing key support levels. With the current price at $538.05 (+2.16% in 24 hours), the short-term trend is exhibiting positive signals that allow traders to consider bullish opportunities around 623-626. However, it is important to note that the overall market remains in a downtrend, so clear confirmation is necessary before taking action.

Optimal Entry Point - Zone 623-626

The price range of 623-626 is identified as the main entry zone based on the nearest resistance levels. To execute a safe trade at this level, traders should wait for specific confirmations: the price must touch the weak low and then rebound strongly with significantly increased trading volume. Additionally, candlestick patterns such as bullish pinbars or green engulfing candles will serve as strong signals to confirm buying interest at this zone.

Profit Targets by Stage

The profit-taking plan is divided into three stages to optimize gains and manage risk effectively.

TP1 - Zone 633.5-636.3: This is the nearest resistance within the previous consolidation area, representing an initial profit target of approximately 1-2%.

TP2 - Zone 641-644: Corresponds to the previous high point (Equal High - EQH), offering an average profit target of around 3%.

TP3 - Zone 657-665: If the recovery trend continues strongly, this is the next major resistance, providing a higher profit target of about 5-6%.

Risk Management Plan

The stop loss (SL) is a critical element in any trading strategy. In this case, place SL below 620 or at the potential strong support level at 614.6. Choosing the correct stop loss position will help protect capital if the recovery hypothesis does not materialize.

Important Notes Before Trading

The success of this trade depends heavily on maintaining the 625.9 zone. If this level is defended and the price bounces with buying strength, BCH could retest the previous consolidation area (636+). However, it is essential to emphasize that the overall trend remains bearish, so clear confirmation from technical signals is necessary before committing to any long-term positions. This is not investment advice but technical analysis based on current data.