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Bitcoin Cash ($BCH) price briefly reclaimed the $250 on Tuesday before the bears forced an 8% retracement toward the $230 range. On-chain data examines how the $BCH miners’ recent trading activity has impacted prices.
Bitcoin Cash whales capitalized on the bullish sentiment surrounding the altcoin markets to drive $BCH up the charts in late September. On-chain analysis highlights what the $BCH miners are doing behind the scenes.
Bitcoin Cash Miners Have Sold 250,000 Coins This Week
Bitcoin Cash price raced up the charts in late September, hitting a 30-day peak of $250 on October 2 courtesy of intense whale demand. But behind the scenes, $BCH Miners have capitalized on the bull rally to book profits worth millions.
On-chain data shows that the miners’ cumulative reserve balances stood at 6.5 million $BCH as of September 29. But that figure has dropped to just 6.25 million $BCH as of October 5.
This implies that the miners offloaded 250,000 $BCH coins this week, taking advantage of the Bitcoin Cash price rally.
Miners Reserves metric tracks the current deposit balances in wallets controlled by recognized large-scale $BCH miners and mining pools.
When valued at the current market price of $230, the 250,000 $BCH sale means the miners have withdrawn approximately $57.5 million.
This appears to have contributed significantly to the 8% $BCH price decline this week.
Notably, after nearly offloading about 2.7 million $BCH over the last three months, the Miners still control 6.25 million coins (about 3% of the total 19.52 million $BCH in circulation). Hence, further sell action could influence Bitcoin Cash prices significantly.
Read More: : Best Cloud Mining Sites 2023: A Beginners Guide
Crypto Whales are Holding For a Possible Bullish Reversal
After double-digit gains in September, the 8% price decline this week has not dampened the $BCH whale investors’ positive disposition. Price-savvy whales holding 100,000 to 1 million $BCH have been in buy mode since September 21, according to on-chain data readings from Santiment.
The chart below depicts how the whales increased their balances from 2.41 million $BCH on September 21 to 2.56 million $BCH on October 2. But despite $BCH prices dropping from $250 to $230 in 2 days, the whales have held their balances steady at 2.56 million.
With Bitcoin Cash currently trading at $230, the balances held by the whales mentioned above are worth $600 million, nearly 14% of the Bitcoin Cash total market cap.
This means that they wield significant influence within the $BCH network. Evidently so, $BCH’s price gained over 150% when they bought a staggering 420,000 coins between June 19 and July 6, 2023.
However, it remains to be seen if they will HODL, double down, or diversify their portfolio into lesser-cap altcoins as the bull market matures.
Read More: 11 Best Crypto Portfolio Trackers in 2023
$BCH Price Prediction: The Bearish Miners Could Force a $200 Retest
The on-chain indicators analyzed above establish a close correlation between the $BCH price and the whales’ buying pressure. Hence, the bearish miners force a downswing toward $200 unless they resume the accumulation wave.
The Exchange Order Books chart, which shows the price distribution of current active $BCH orders, also confirms this positive outlook. It confirms that those looking to sell $BCH have outnumbered the current market demand.
As seen below, strategic crypto traders have placed orders to buy 40,041 $BCH if the price rises drop 5% to hit $220. If they activate those orders, they could potentially avert further downswing significantly.
But if the miners continue to sell, that support buy-wall could cave and trigger a larger drop toward $200.
Conversely, Bitcoin Cash bulls could negate that bearish prediction if the bullish whales return to action. But, as shown above, crypto traders have opened orders to sell 48,890 $BCH once the price rises 5% to $242.
This resistance will likely trigger a pullback as bears dominate the $BCH spot market orders.
However, if that Bitcoin Cash resistance level caves, the bulls could increase toward $300 for the first time since June.
Read More: How To Make Money in a Bear Market
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