Between July 6 and July 25, Bitcoin Cash price declined 27% from $295 to $233 as BCH miners offloaded a huge chunk of their reserves. Over the past week, bullish whales have started buying again. Do they have enough in the tank to trigger a sustained price recovery?
On June 20, Bitcoin Cash was listed as one of the four cryptocurrencies traded on the institutional exchange EDX markets.
Backed large Wall Street firms, including Citadel Securities, Fidelity Investments, and Charles Schwab, that listing played a critical role in the BCH’s rally to its 2023 peak of $320 in late June. One month later, on-chain data reveals that whales appear to be dominating the BCH landscape again.
Will retail investors also pile on buy pressure to reignite a sustained price recovery toward the $300 territory?
Bullish Whales are Going Up Against the Miners
Over the last 60 days, Bitcoin Cash miners have sold off 26% of their holdings, depleting their reserves from 8.9 million to 6.59 million BCH. However, bullish BCH whales are gaining a foothold after a significant price retracement.
Large investors have continued buying despite the BCH price correction in the first half of July. The Santiment chart below illustrates that whales holding 100,000 to 10 million BCH have made large purchases over the past two weeks.
Between July 14 and July 31, they increased their holdings by an eye-popping 230,000 BCH, taking advantage of the price drop to scoop the dip.
The Whales Wallet Balances metric shows real-time changes in the cumulative wallet balances of whale investors. When they keep buying during a price decline, as observed above, it indicates that the whales are pinning for a price recovery.
Notably, the newly-purchased 230,000 BCH is worth $58.4 million at the current market value of $254. If they continue on this trajectory, BCH price will likely begin in August 2023 positively.
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Another Wave of Media Buzz is Building Up Around Bitcoin Cash
Furthermore, on-chain data shows that the media coverage has raised optimism across the global Bitcoin Cash community. In indication, BCH Social Volume metric has maintained a consistent uptrend over the past week.
On July 21, the Bitcoin Cash Social Volume score stood at 62. And by July 30, it has gone up by 56% to reach 97.
The Social Volume data evaluates the level of media coverage that a blockchain network is currently pulling. It essentially aggregates the total mentions of the project across relevant crypto media channels.
Generally, when Social Volume rises, it signals that investors are becoming increasingly aware and interested in the project. If the media buzz persists, it could also reel in the retail mass-market investors to join the bullish BCH whales’ accumulation wave.
BCH Price Prediction: A Potential $300 Retest?
Heading into August 2023, Bullish Bitcoin Cash whales will look to push the price above $300 again.
The bulls must first scale the $280 resistance to be confident of that optimistic price outlook. But considering that 1.25 million investors had bought 2.24 million at an average price of $282, this could take some doing. If they look to book some profit, it could prematurely end the BCH price recovery.
However, if the bullish BCH whales have enough in the tank, the rally could surpass $300 once again.
Still, the bears could reverse the trend and push the price closer to $200 if the BCH whales abruptly stop buying. But Bitcoin cash will have significant support from 461,000 investors that bought 2.25 million coins at the minimum price of $228.
If that support level cannot hold, BCH could retrace toward $200.
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