【$BCH Signal】Oversold Rebound Play! 1H RSI Bottom Divergence, Hidden Short Squeeze Rebound

$BCH The 1H timeframe is in an extremely oversold state, with RSI dropping to 17.5. The 4H RSI is also below 20, the first time in nearly a month. After a continuous plunge, price consolidates sideways in the 483-486 range with decreasing volume, temporarily exhausting selling pressure. Although the 4H trend remains downward, the extreme oversold condition and potential bottom divergence on the 1H timeframe present a high-probability short-term rebound opportunity.

🎯Direction: Long (Long)

🎯Entry/Order: 485.0 - 487.0 (Reason: Current price zone, 1H timeframe consolidation support platform)

🛑Stop Loss: 479.0 (Reason: Break below recent consolidation low of 483.0, considering ATR downward movement)

🚀Target 1: 498.0 (Reason: Previous small resistance platform on 1H and EMA20 pressure)

🚀Target 2: 508.0 - 510.0 (Reason: Starting point of a large bearish candle on 4H and key psychological level)

🛡️Trade Management:

- Position Size: Light (Reason: Trading against the 4H trend, a left-side play with higher risk)

- Execution Strategy: After reaching Target 1, reduce position by 50% to lock in profits, and move the remaining stop loss to the entry price. If price surges quickly, watch for resistance near 510 and consider exiting all positions.

Deep Logic: Open interest (OI) remains stable during the plunge, not continuously decreasing, indicating it’s not just bullish longs fleeing but possibly new shorts entering. The negative funding rate (-0.0263%) fuels potential short squeeze. Market depth shows decent buy-side support, but heavier sell pressure above, requiring volume to break through. The core playpoint is: technical correction after extreme oversold conditions combined with short covering rebounds under negative funding. This is a high-risk, high-reward contrarian sniper opportunity.

View real-time market 👇 $BCH

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