Miners Sell 250,000 Bitcoin Cash Impacting Its Price

Bitcoin Cash (BCH) has experienced price fluctuations in recent days, causing concern in the investment community. Amid optimism among investors driven by rising altcoin prices, Bitcoin Cash whales hoped to boost the asset's price. However, BCH miners have opted to sell a significant number of coins, significantly affecting the price dynamics.

On October 2nd, the price of Bitcoin Cash briefly reached $250, marking a 30-day high. However, bears quickly pushed the price down by 8%. Meanwhile, Bitcoin Cash miners seem to have decided to capitalize on the upward trend and sold 250,000 BCH coins, amounting to approximately $57.5 million. This event reduced the total balance of BCH miners from 6.5 million coins to 6.25 million in just a few days.

Currently, miners control about 3% of the total circulating Bitcoin Cash supply, making their actions crucial for the cryptocurrency's price dynamics. Further sales could significantly impact BCH's price.

Despite the 8% drop in BCH's price, large investors remain interested in the asset. According to Santiment data, addresses holding between 100,000 and 1 million BCH increased their holdings by 2.56 million coins between September 21st and October 2nd. The actions of this group of holders closely correlate with changes in Bitcoin Cash prices. Historically, their purchases of 420,000 coins led to a price increase of over 150%.

Considering the significance of whales' actions for BCH's price dynamics, their possible inaction could trigger a new correction. The Exchange Order Books chart, which displays the current distribution of active orders, confirms this scenario. Traders have placed orders to buy 40,041 BCH at $220. However, if miners continue selling, the support wall may not hold, potentially causing further price decline to the $200 level.

It's worth noting that active intervention by Bitcoin Cash whales in the market could change the outlook in a more positive direction. Those who have placed sell orders for 48,890 Bitcoin Cash at $242 may exit their positions and create conditions for further BCH growth. If large investors manage to overcome this resistance, the Bitcoin Cash price could once again target the $300 mark.