What to expect from Bitcoin Cash (BCH) after 140% growth
Date: 2023-06-29 Author: Karina Ziganova Categories: BLOCKCHAIN
This week, the price of Bitcoin Cash (BCH) soared by more than 100%, reaching a 13-month peak of $235. Key on-chain metrics point to the possibility of continuing the rally.
On Tuesday, June 20, the official launch of EDX Markets took place. The new cryptocurrency exchange is aimed at institutional clients and is backed by major Wall Street players such as Fidelity and Citadel. To meet the requirements of regulators, the platform has listed only four assets: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. According to the testimony of a number of on-chain metrics, BCH has significantly benefited from this step.
Whales are again interested in Bitcoin Cash
Since the launch of EDX Markets, the number of large transactions on the Bitcoin Cash network has soared by 700%, from 102 to 766. Notably, this happened for the first time since March 2022.
The Whale Transaction Count metric of the Santiment platform tracks the daily number of transactions exceeding $100,000. The growing interest of whales in BCH testifies to their confidence in the prospects of the project and its viability. Thus, the actions of large investors may put some upward pressure on the price of Bitcoin Cash in the coming days.
BCH Retail Investors Are Not Far Behind
Although institutional investors have played a decisive role in the recent growth of BCH, ordinary market participants are also showing a bullish mood. The Santiment chart below shows that between June 22 and June 28, the number of active addresses on the Bitcoin Cash network increased by 25%, from 302,030 to 376,620.
The Daily Active Addresses metric tracks the number of unique addresses that interact with the blockchain. When it increases significantly, as shown above, it signals an increase in user interest in the asset.
Positive sentiment among whale investors and the constant growth in the number of retail market participants are the most important bullish factors that can push BCH to new heights.
Bitcoin Cash's price rally may continue
BCH bulls seem poised to break the $250 resistance in the coming weeks. But first, they will have to break through a wall of 65,080 addresses that bought 80,000 coins at a maximum price of $240. Profit-taking with these wallets could put an end to the rally.
In the event of a fall below $225, the bears will take control of the situation. The 111,570 investors who bought 50,530 Bitcoin Cash at an average price of $225 could prevent further declines. However, if they do not resist, the asset may sharply roll back to the $200 mark.
