Bitcoin Cash miners' reserves hit a 5-year low: what it means for BCH
Date: 2023-09-06 Author: Karina Ziganova Categories: BLOCKCHAIN
The total reserves of Bitcoin Cash miners fell below 6 million coins for the first time since November 2018.
Key on-chain metrics are hinting that growing bearish pressure is jeopardizing the $150 support level. We figure out what to expect from the BCH price in the near future.
Miners keep getting rid of Bitcoin Cash
On June 30, 2023, Bitcoin Cash hit $329 for the first time in 14 months. Miners took advantage of the rally to offload their inventory at bargain prices.
According to the analytical platform IntoTheBlock, at the time of reaching the local maximum, the total reserves of miners amounted to 7.16 million coins. However, as of September 6, they have fallen to 5.99 million BCH.
Interestingly, even now, when Bitcoin Cash is trading around $192, miners continue to sell, considering the current prices to be favorable. If the trend continues, the growing bearish pressure could see BCH drop below $150.
Large investors are losing interest in BCH
The rapid decline in the number of large transactions has become another worrying trend for BCH holders.
According to Santiment data, whale activity on the Bitcoin Cash network has been steadily falling for 3 consecutive months. In June, large investors made 650 transactions worth more than $100,000. In July and August, their number was 490 and 279, respectively. On September 3, the indicator fell to a three-month low - on this day, the whales made only 9 transactions.
If retail market participants decide to follow the example of the large holders of the asset, BCH may face hard times.
Bitcoin Cash Price Prediction: Drop Below $150
Growing bearish pressure could trigger an extended drop in the price of Bitcoin Cash towards $150. This thesis is also confirmed by the IntoTheBlock data, which shows the distribution of entry prices for positions among current BCH holders.
The 114,750 addresses that purchased 391,300 tokens at a minimum price of $173 will provide some support to the asset. However, if they fail, BCH will continue to sink further.
Bulls can refute this pessimistic forecast by pushing the token quotes in the direction of $250. However, first they will have to overcome the resistance of 60,120 wallets that bought 1.5 million coins at an average price of $220: if they decide to get out of positions, the rally can quickly come to naught.
