- Bitcoin Cash whales have stopped their buying spree since July, causing uncertainty that may lead to a price slump below $250.
- The BCH network is experiencing a decline in user activity, hinting at a potential bearish trend.
With June being a season of exponential gains for Bitcoin Cash (BCH), the subsequent stagnation in July, marked by a 13% dip, raises eyebrows and questions about the future trajectory of the digital asset. The pivotal contributors to the coin’s triple-digit leap in June, BCH whales, seem to have pulled back, perhaps indicating an impending significant retracement toward the $250 mark.
Bitcoin Cash Whales: A Pause in Acquisition
Analyzing the data on the blockchain reveals that the group of Bitcoin Cash whales, those holding between 1 million to 10 million coins, were the drivers of the June rally. Their cumulative acquisition of approximately 170,000 BCH coins, equating to roughly $52.4 million, propelled the price well over the $300 milestone for the first time since May 2022.
However, in a striking departure from their prior activity, these whales have ceased their acquisitions since the beginning of July. Their BCH balances have stagnated around 1.51 million coins, reflecting their current neutral stance. This lack of activity can often be interpreted as a bearish signal by other investors and might be a precursor to a price drop, given the substantial financial power and influence these whales wield in the crypto market.
A Dip in User Activity: A Bearish Omen?
Adding to the potentially bearish sentiment, a steady decline in user activity has been recorded across the Bitcoin Cash network over the past week. At the end of June, the network logged a recent high of 376,000 active users. As of July 4, this figure has seen a 23% decrease to 309,000 daily active addresses. This downturn may signal that the digital asset could face difficulties attracting new demand in the coming days.
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This combination of whale indifference and waning retail interest could pull the BCH price below the $250 threshold if the trend persists. However, there is still a line of defense. A group of 147,000 investors, who collectively bought 564,000 BCH at the maximum price of $267, could offer support around $265 to prevent a severe slump.
The future trajectory of BCH largely hinges on the actions of the whales and retail market participants. If bullish momentum overpowers, and the BCH price can rebound to about $300, a new 2023 peak of $330 could be on the horizon. But if the bearish sentiment prevails, we could witness a drop below $250. The crypto world watches with bated breath as the drama unfolds in the BCH market.
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