The post BCH Technical Analysis Jan 21 appeared on BitcoinEthereumNews.com.

For BCH, under current market conditions, the risk/reward ratio is approximately 1:0.6, meaning potential losses are higher than gains. Investors should implement capital protection-focused stop loss strategies in the sideways trend and BTC downtrend, keeping position size within a 1-2% risk limit. Market Volatility and Risk Environment BCH is currently trading at 590.30 USD, showing a limited +1.37% change over 24 hours but exhibiting 4.9% volatility in the daily range of 564.20-592.10 USD. RSI at 45.95 is in the neutral zone, with low overbought/oversold risk, but the Supertrend bearish signal and trading below EMA20 (602.82 USD) indicate short-term bearish pressure. With a sideways trend dominant, MTF analysis shows 15 strong levels (1D:4S/4R, 3D:2S/3R, 1W:2S/4R); this could lead to volatility spikes on sudden breakouts. The overall crypto market volatility runs at 5-7% daily on an ATR basis, and BCH carries additional risk due to its BTC correlation. Investors should factor volatility into position sizing to prevent capital erosion; for example, prefer fixed fractional risk (1%) over the Kelly Criterion in high fluctuations. Risk/Reward Ratio Assessment Potential Reward: Target Levels In a bullish scenario, the 763.33 USD target (score:22) offers 29.4% upside potential from the current price. This level requires a breakout above resistances (616.78 USD score:72, 596.89 USD score:64, 643.79 USD score:64). However, in a sideways trend, reaching this target is low probability; the reward distance (173 USD) is insufficient for the risk/reward balance. Potential Risk: Stop Levels Bearish target at 303.28 USD (score:4) carries 48.6% downside risk; this asymmetric structure is disadvantageous for long positions. Main supports at 582.66 USD (score:86), 529.68 USD (77), 556.33 USD (73); invalidation is expected below these levels. The risk distance (287 USD) is nearly twice the reward, making the 1:0.6 R/R ratio a critical warning signal for capital protection. Stop Loss Placement Strategies Stop…

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Filed under: News - @ January 21, 2026 6:26 am