After posting triple-digit gains in June, Bitcoin Cash (BCH) started July on a negative note with a 13% price correction. On-chain data shows that Bitcoin Cash whales are now taking hawkish positions. Will it lead to a massive bounce towards $250?
Bitcoin Cash had a great June, posting gains of over 150% as it surged above $300 for the first time since May 2022. However, bears are now trying to take control in July.
Bitcoin Cash Whales is great for buying positions
According to on-chain data, the Bitcoin Cash whale group containing 1 million to 10 million coins played a pivotal role in the June rally. Between June 21 and June 30, they bought a whopping 170,000 BCH worth of roughly $52.4 million.
But remarkably, since the beginning of July, they have clearly stopped buying. It is worth noting that between July 1st and July 4th, the total BCH balances remained around 1.51 million coins.
The Whales Wallet Balances metric assesses business sentiment among large institutional investors by tracking real-time changes in the number of tokens they hold.
When whales buy more coins, the price of the asset often goes up due to its financial strength and strategic influence over other investors.
As we saw above, the massive accumulation frenzy among this group of whales played an important role in the price hike in June. With them now taking a hard line, it’s no surprise that BCH’s growth trend is flat.
If the whales maintain their neutral stance for much longer, it is only a matter of time before other investors interpret it as a bearish sign.
BCH user activity is in decline
In an even more bearish turn of events, user activity across the Bitcoin Cash ecosystem has been dropping steadily over the past week. On June 29, the Bitcoin Cash network recorded 376,000 active users at a recent high.
With that said, as of July 4, Santiment’s chart below shows how to trade Bitcoin Cash Daily active headlines had fallen by 23% to 309,000.
the active addresses (7d) Measure changes in user activity by tracking the daily number of unique wallet addresses executing transactions.
When it declines, a bearish sign indicates that the asset may struggle to attract new demand in the coming days.
Hence, in addition to the neutral stance among the Bitcoin Cash whales, the mass retail market participants also seem to be squandering interest in Bitcoin Cash this week. If this trend continues, BCH price could drop below $250.
BCH Price Prediction: Bears could force a pullback below $250
Given the above factors, the Bitcoin Cash whale could force a drop below $250 if it turns bearish. However, the bulls will offer some support around $265. In that area, 147,000 investors who bought 564,000 BCH at a maximum price of $267 could prevent a recession.
But if the bearish momentum consolidates and the support level caves in, BCH could drop below $250 eventually.
Bitcoin Cash (BCH) Whales, June 2023. | Active Addresses (7d) – Source: IntoTheBlock
However, the Bitcoin Cash bulls could proceed higher if the BCH price can bounce around $300 again. However, the 234k investors who bought 421k BCH at a maximum price of $296 could cause a pullback.
But if the resistance level does not hold, BCH could reach a new high in 2023 at $330.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.