The Factors Holding Back the Bitcoin Cash (BCH) Price Rally
The price of Bitcoin Cash (BCH) recently retraced from the $265 level after experiencing double-digit weekly gains. However, there are several critical factors that could be hindering the BCH price rally.
BCH Miners Have Cut Their Reserves by $200M in 30 Days
Data reveals that BCH miners have been on a month-long selling frenzy, offloading 780,000 BCH on the markets over the past month. This decline in miners’ reserves suggests that node validators are actively liquidating their block rewards instead of holding them for future gains. If this trend continues, it could dilute the market supply and put downward pressure on the price of BCH.
Investors Can Look Toward Bullish Whales
While miners have been selling off BCH, bullish crypto whales have been accumulating. Whale wallets holding 1,000 to 10 million BCH have increased their holdings from 11.66 million to 11.70 million BCH in the past month. Although this accumulation is smaller compared to the miners’ sell-off, it boosts confidence among retail investors and can help absorb excess market supply.
BCH Price Rally: The $280 Resistance Could Be Critical
If the prevailing bullish sentiment in the crypto markets intensifies, Bitcoin Cash price could be propelled closer to $300 with support from whales. However, there is a major obstacle at the initial resistance level of $280. If the BCH bulls can break through this resistance, it could prompt a rally towards $300. On the other hand, bears may attempt to force a reversal below $200, but there is strong support at $225.
Hot Take: Will BCH Overcome Selling Pressure and Rally Higher?
The selling pressure from BCH miners has been a key factor holding back the price rally. However, the accumulation by bullish whales provides hope for a potential upward movement. If the whales continue to buy BCH, it could gain more momentum and overcome the selling pressure. The resistance at $280 will be a critical level to watch, as a breakout could lead to a rally towards $300. Ultimately, the future of the BCH price rally will depend on the balance between selling pressure and bullish momentum.
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