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Bitcoin Cash ($BCH) price reclaimed $215 on Tuesday as Long-term investors intensified their buying activity. On-chain analysis examines how long-term holder wallets controlling the lion’s share of the circulating supply could impact $BCH prices.
Bitcoin Cash hit a 2023 price peak of $329 on June 30 before retracting 48%. But despite experiencing intense volatility in H2 2023, Bitcoin Cash long-term investors continue to HODL.
Long-term Investors Now Make Up 96% of $BCH Holders
$BCH reclaimed the H2 2023 $228 peak on August 29, less than two weeks after dropping toward $164. Amid intense volatility in the broader crypto industry, $BCH has held the vital $180 support level since then.
On-chain data reveals that resilience shown by long-term investors has been vital to $BCH’s strong price performance in recent weeks. As depicted below, only 22.5 million addresses had held their balances for up to 1 year when the $BCH price hit the 2023 peak of $329 on June 30.
But, despite the price correction that has followed, the number of long-term holder wallets has now hit 23.96 million. This brings the Long-term holder dominance to 96%.
In crypto terms, $BCH wallets that have held their tokens for 1 year or more or less are called “Long-term Holders.” Generally, a higher number of long-term holders can contribute to price stability.
The chart above clearly illustrates that rather than close their positions amid price fluctuation, a significant number of investors on the $BCH network have become long-term holders over the past three months.
This is a tell-tale sign that the recent $BCH price recovery is being driven by organic network growth rather than speculative trading activity.
A 96% long-term holder dominance suggests that $BCH could experience a low turnover of coins going forward. Since they are less likely to engage in frequent sell-offs, this could mitigate the volatility and power bullish price action in the coming weeks.
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Long-term Holders Dominance Could Spur Whale Accumulation
As Bitcoin Cash long-term investors double down on their positions, whale investors appear to grow in confidence.
Indicatively, crypto whales with balances of 100,000 to 10 million $BCH held a total of 3.74 million $BCH as of September 18. But the chart below illustrates that as of September 26, that figure has increased to 3.86 million $BCH.
Notably, the newly acquired 120,000 $BCH brings the whales’ balances to levels last seen in July 2023.
Currently valued at $213, the 120,000 $BCH recently acquired by the Bitcoin Cash whales are worth approximately $25.6 million. Historical trends show that due to their substantial holdings, the buying activity of this whale cluster has often moved $BCH prices significantly.
Hence, if the long-term investors keep HOLDing, $BCH price holders could experience more upside in the coming weeks.
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$BCH Price Prediction: Steady Climb Toward $300
Bitcoin Cash price action has been underwhelming in H2 2023 so far. Nevertheless, the growth in Long-term holder addresses suggests that the ecosystem will likely maintain a steady user base and network demand to propel $BCH toward $300 long term.
The Global In/Out of Money Around Price (GIOM) data, which depicts the purchase price distribution of current Bitcoin holders, also validates a bullish narrative.
It shows that if the $BCH price scales the initial resistance at $230, the bulls could ride the wave toward $300.
As shown below, 647,420 addresses had bought 3.69 million $BCH at an average price of $230. If they book early profits, they could pose a major obstacle.
But if the long-term investors keep stockpiling their holdings, the Bitcoin Cash price could reach $300 eventually.
Conversely, the bears could seize control if $BCH’s price swings below $200. However, the chart above shows that 175,070 addresses have bought 393,940 $BCH at the maximum price of $200.35.
They will likely avert a bearish downswing, especially given the current buy pressure among the whales.
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