BCH has recently fallen into a converging triangle pattern, which often indicates a critical point for a major move. From the current funding rate, it is indeed positive, and there are quite a few bullish forces, but this is precisely the problem—although the bulls are present, the upward momentum appears weak.

According to conventional technical analysis, this kind of situation usually leads to a sharp decline first, with a clear purpose: to shake out those impatient bulls. My own strategy is based on this interpretation. The short position I placed at 638 yesterday has already been filled, and my current plan is to take profit around 626, then reverse to go long.

The key point here is: since the upward momentum is weak, the price needs to move down first, so that enough bullish energy can be accumulated. The next step is expected to follow the trend of BTC to move upward, so a counter-trend operation now is very important. If you plan to go long, there's no need to rush; around 620 is a good opportunity, but be sure to control your position size, as volatility will continue at this stage.