Whales have lost interest in Bitcoin Cash: will the price of BCH fall below $250
Date: 2023-07-05 Author: Karina Ziganova Categories: BLOCKCHAIN
After a triple-digit increase in June, Bitcoin Cash started July with a 13% price correction.
In June, Bitcoin Cash made a splash, soaring above the $300 mark for the first time since May 2022. However, readings from key on-chain metrics indicate that bears are actively trying to seize control of BCH.
Crypto whales have cooled to Bitcoin Cash
According to the Whales Wallet Balances metric, whales have begun to lose interest in Bitcoin Cash. Addresses with a balance of 1 to 10 million coins played a key role in the June rally - in the period from June 21 to June 30, they bought 170,000 BCH worth about $52.4 million.
If the whales continue to maintain their neutral position, other investors will surely interpret this as a bearish signal and begin to get rid of the coins.
BCH user activity is decreasing
The drop in user activity in the Bitcoin Cash ecosystem confirms the possibility of an imminent correction. On June 29, the network registered a maximum of 376,000 wallets, but as of July 4, their number fell by 23% to 309,000.
This suggests that retail investors have also cooled to BCH. If the trend continues, the price of the asset may correct to $250 and below.
Bears may push Bitcoin Cash to $250
Given the above-mentioned factors, bears can trigger a pullback of Bitcoin Cash to $250. However, first they will have to get rid of support from 147,000 addresses that bought 564,000 BCH at a maximum price of $267.
However, the bulls will launch a new rally if the price of BCH rises to $300 again. In this case, the asset will continue to move to a new peak at $350. However, 234,000 wallets that purchased 421,000 coins at a maximum price of $296 could trigger a rollback.
