Bitcoin Cash Holders Suffer Losses: Does BCH Have a Chance of Recovery
Date: 2023-07-18 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The price of Bitcoin Cash continues to fall after reaching an annual high of $320 in June. BCH holders gather strength before a new breakthrough in the hope of reducing possible losses.
On June 30, Bitcoin Cash updated its annual high of $320 amid renewed interest from institutional investors. However, the hype around the asset is gradually subsiding, and long-term BCH holders have to withstand growing selling pressure.
Losses of Bitcoin Cash holders are growing
The price of Bitcoin Cash has been in a downtrend for several weeks now. The current ratio of market value to realized value (MVRV) clearly demonstrates the growing level of losses of BCH holders.
In the chart below, you can see that between July 12 and July 18, the MVRV value decreased from 10% to -8%. This means that most investors who have purchased an asset in the last 30 days incur a loss of 8%.
In an attempt to avoid further increases in losses, Bitcoin Cash holders can make the final push and move on to active purchases.
Long-term investors cool selling pressures
Long-term holders are also making a lot of efforts to avoid a prolonged bearish trend. According to Santiment, between July 13 and July 17, the number of BCH transferred decreased by 73%, from 21.57 million to 5.72 million.
The Age Consumed metric is calculated by multiplying the number of coins in circulation by the number of days spent on current wallet addresses. This allows you to gauge network-wide selling pressure by tracking how long investors hold their tokens.
The rise in unrealized losses and the fall in Age Consumed mean that many BCH holders are reluctant to sell them at current prices.
BCH price may bounce back to $270
Given the above factors, BCH is likely to bounce back to $270 before the next reversal. However, the bulls will face significant resistance at $257 – 450,000 addresses that purchased 2.48 million coins at this price could break even and provoke another decline.
In case of consolidation below $230, control over the situation will pass to the bears. 353,000 wallets that bought 1.95 million Bitcoin Cash at a maximum price of $235 will provide some support to the asset, but if they do not resist, the token will face a further drop to $200.
