Bitcoin Cash Miners Selling 250,000 Coins This Week
Bitcoin Cash (BCH) experienced a surge in price in late September, reaching $250 on October 2 due to strong demand from whales. However, behind the scenes, BCH miners have been taking advantage of the rally to sell their coins and make profits. On-chain data reveals that the miners’ reserve balances dropped from 6.5 million BCH to 6.25 million BCH between September 29 and October 5, indicating that they sold around 250,000 coins. This selling activity has contributed to an 8% decline in the BCH price.
Crypto Whales Holding for a Potential Bullish Reversal
Despite the recent price decline, large BCH investors known as whales remain positive about the cryptocurrency. On-chain data shows that whales holding between 100,000 and 1 million BCH have been buying since September 21 and have maintained their balances at around 2.56 million BCH even as the price dropped from $250 to $230. These whales currently hold approximately $600 million worth of BCH, which accounts for nearly 14% of the total market cap. Their buying pressure has had a significant impact on BCH prices in the past.
BCH Price Prediction: Bearish Miners May Push for a $200 Retest
The selling activity of miners has a close correlation with the BCH price. If bearish miners continue to sell, it could result in a downswing towards $200 unless they resume accumulating coins. The Exchange Order Books chart also indicates a positive outlook as there are more sellers than buyers at the current market demand. However, strategic traders have placed buy orders for 40,041 BCH if the price drops by 5% to $220, which could prevent further decline. Conversely, if the resistance level of $242 is broken, the bulls could push the price towards $300 for the first time since June.
Hot Take: Bearish Miners Impact BCH Price While Whales Hold Strong
The recent decline in Bitcoin Cash (BCH) prices can be attributed to the selling activity of miners, who have offloaded 250,000 coins during the week. This has resulted in an 8% retracement. On the other hand, large investors known as whales continue to hold their positions and remain optimistic about BCH’s future. Their buying pressure has had a significant impact on BCH prices in the past. The current market conditions suggest that further sell-offs by miners could lead to a retest of $200, while a bullish reversal is possible if whales increase their buying activity and break resistance levels.
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