Bitcoin Cash (BCH) Miners Deplete Reserves
The price of Bitcoin Cash (BCH) has dropped 10% to $225 after failing to break through the $250 resistance level. This comes as Bitcoin miners and crypto whales have taken opposing positions, which could impact the future reaction of BCH price.
Back in June, BCH experienced a significant rally, causing miners to capitalize on the surge and sell off their block rewards. Between June and October, miner reserves dropped from 8.37 million to 5.76 million BCH, the lowest level since 2018. This selling frenzy by miners has contributed to the recent price reversal of BCH.
Bullish Whale Investors Accumulate BCH
To counteract the bearish impact of miner sell-offs, bullish crypto whales have been accumulating BCH in recent weeks. The approval of ETH Futures ETF and positive Non-Farm Payrolls reports have increased corporate confidence in the crypto industry, leading to fresh capital inflows into BCH. Whales holding 100,000 to 1 million BCH increased their cumulative balances from 2.41 million to 2.57 million between September 21 and October 9.
BCH Price Prediction: Support at $200 Level
With miners selling and whales accumulating, the BCH price is likely to find support at the $200 level. The Global In/Out of Money Around Price (GIOM) data shows a major support cluster for BCH around $210, indicating that holders are likely to prevent further price breakdown if that level is reached. However, if this support fails, BCH could drop below $200. Conversely, if the price exceeds $250, another reversal may occur as profit-taking by bullish whales could trigger a downward trend.
Hot Take: Miner Sell-Off and Whale Accumulation Impact BCH Price
The recent decline in Bitcoin Cash miner reserves and the accumulation of BCH by bullish whale investors have had a significant impact on the price of BCH. While miners selling off their block rewards has contributed to a price reversal, the accumulation of BCH by whales has provided support. The battle between miners and whales will likely continue to influence the future price action of BCH. If the support cluster at $200 holds, BCH could avoid major retracement, but if it fails, the price may drop further. Additionally, profit-taking by bullish whales could trigger another reversal if the price exceeds $250.
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