Will whales be able to push Bitcoin Cash (BCH) above $300 in August
Date: 2023-08-01 Author: Karina Ziganova Categories: BLOCKCHAIN
Between July 6 and July 25, the price of Bitcoin Cash decreased by 27% from $295 to $233 as BCH miners got rid of some of the reserves.
However, by the end of the month, the selling pressure began to ease, and large investors began to show interest in Bitcoin Cash. Let's see if they have enough strength to push the price of BCH back to $300.
Bitcoin Cash whales gather strength
Over the past 60 days, miners have reduced their reserves from 8.9 million to 6.59 million BCH. However, the whales seem to have taken the opposite position: the Santiment chart below shows that between July 14 and July 31, addresses with balances between 100,000 and 10 million tokens purchased another 230,000 coins worth about $58.4 million.
The Whales Wallet Balances metric tracks the change in the aggregate balance of the wallets of large investors. If this cohort continues to buy during the price fall, as observed above, this indicates that the whales are counting on a price recovery.
Social sentiment around BCH has changed to positive
On-chain data also suggests that social sentiment around Bitcoin Cash has improved significantly. The BCH Social Volume metric has maintained a steady upward trend over the past week: in the period from July 21 to July 30, its values soared by 56%.
Social Volume assesses the level of media coverage of an asset. In fact, this is a set of mentions of the project in the relevant cryptocurrency publications. The growth of the indicator indicates that investors are showing increasing interest in Bitcoin Cash. The hype around the coin may attract retail investors who will join the wave of BCH accumulation by whales.
BCH Price Prediction: Potential $300 Retest
Optimistic Bitcoin Cash whales will seek to raise the price above $300 again. However, on the way to this mark, they will first have to overcome the resistance of 1.25 million addresses that bought 2.24 million coins at an average price of $282. If they want to take profits, a further rally could be in jeopardy.
However, the bears could reverse the trend and push the price towards $200 if large investors abruptly stop buying BCH. The 461,000 wallets that purchased the asset at a minimum price of $228 will provide him with some support. But if they don't hold out, Bitcoin Cash will roll back to the $200 mark.
