Crypto Whales Drive the BCH Price Rally
Bitcoin Cash (BCH) has seen a surge in price, with gains of 25% in September. This makes it the second-best performing asset in the top 20 crypto market rankings. The rise in price can be attributed to increased trading activity by whale investors.
On September 27, the BCH network recorded 361 Large Transactions, the highest level since August 7. Large transactions are seen as a bullish signal because they increase market liquidity and allow for favorable prices.
Bearish Sentiment Grows on Social Media
Despite the price rally, there is growing bearish sentiment on social media regarding Bitcoin Cash. The BCH Weighted Sentiment has trended deeper into negative territory since mid-September. This indicates a potential bearish reversal.
However, despite the negative sentiment, the whales have not shown any signs of reducing their buying pressure. If they continue to hold and push the price above $250, it could change the sentiment among retail participants on social media.
$300 Price Target is Possible
If the bullish whales ignore negative social media comments, Bitcoin Cash could reach a price target of $300. The Global In/Out of Money Around Price (GIOM) data supports this prediction.
The data shows that if BCH surpasses the sell-wall at $280, it is likely to continue its upward momentum towards $300. However, if whale investors decide to close out their positions, it could potentially halt the price rally.
Bears Could Negate Bullish Prediction
If the Bitcoin Cash price retraces below $200, it could negate the bullish prediction. However, there is strong support at this level, with 370,000 addresses holding 2.16 million BCH coins at the minimum price of $218.
If this support level is broken, it could trigger a prolonged downswing below $200.
Hot Take: Bitcoin Cash Price Rally Driven by Whales and Bearish Sentiment on Social Media
The recent surge in Bitcoin Cash price can be attributed to increased trading activity by whale investors. Despite growing bearish sentiment on social media, the whales have not shown any signs of reducing their buying pressure. If they continue to hold and push the price above $250, it could change the sentiment among retail participants. A price target of $300 is possible if the whales ignore negative comments. However, if the price retraces below $200 and breaks strong support, it could trigger a prolonged downswing.
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