Bitcoin Cash Short Position Liquidations Hit Monthly High: Will BCH Return to $300
Date: 2023-08-09 Author: Karina Ziganova Categories: BLOCKCHAIN
After a bearish start to the month, Bitcoin Cash (BCH) is finally signaling a potential recovery.
Over the past 24 hours, the price of Bitcoin Cash has risen by more than 8%, dispelling fears about a possible fall below $200. Analysis of on-chain data allows us to estimate the likelihood of a new BCH rally in August.
Bitcoin Cash Short Liquidation Hits Monthly High
Traders who have shorted Bitcoin Cash are suffering big losses. According to the analytical portal Coinglass, the value of shorts liquidated on August 7 amounted to $2.33 million. This is the highest volume of forcibly closed positions since July 13.
A significant spike in liquidations could be a bullish signal for BCH price holders.
Institutional investors are back in business
The listing on the EDX markets institutional trading platform played a key role in the Bitcoin Cash price rally to an annual high of $329. After a month of inactivity, big investors seem to be getting back into action.
On Monday, the whales made 267 transactions exceeding $100,000, according to Santiment data. The last time such a level of activity was observed almost a month ago, on July 14th.
A surge in the number of large trades is considered bullish. They provide much-needed market liquidity and increase retail investor confidence in the asset.
BCH Price Prediction: $250 Resistance Level May Become an Accumulation Zone
As the bulls are in control at the moment, BCH short liquidations could increase as buyers become more active. This will trigger a further price rally towards $280.
However, around the $250 mark, Bitcoin Cash will face a powerful wave of sales. As shown in the chart below, the 363,000 addresses that bought 2.21 million tokens at this price could slow down the rally or even trigger a reversal.
But as historical data suggests that BCH holders have often formed long positions in this range in the past, there is a possibility that resistance at $250 will turn into a larger accumulation zone. If this bullish scenario materializes, the price of the asset could quickly rise to $280.
However, the bears can still take back control and push Bitcoin Cash towards $220. The 182,430 wallets that purchased 450,000 coins at an average price of $225 will give him some support. However, if they fail, BCH will fall further.
