This week, a 1,500% spike in large transactions has sent the BCH price into the recovery zone according to the daily RSI signal. Can larger investors drive the BCH price toward reclaiming $250 in the coming weeks?
Bitcoin Cash’s fortunes have remained closely linked with EDX Markets since BCH’s listing on the Wall Street-backed crypto exchange sparked a 300% price rally toward $300 in June.
On August 23, leading institutional-grade Crypto exchange EDX markets announced a partnership with Anchorage for specialized custody services.
Interestingly, on-chain data trends show that the news has buoyed Bitcoin Cash’s large investors’ confidence after last week’s turbulent altcoin market crash. But will it be enough to trigger another double-digit percentage BCH price rally?
Big Bitcoin Cash Investors are Regaining Confidence
Anchorage’s custody service is expected to mitigate risks surrounding the handling and safekeeping of crypto on behalf of EDX’s institutional clients. As one of the four crypto assets listed on EDX markets, BCH has already witnessed a noticeable uptick in whale transactions this week.
As seen below, BCH whale activity has spiked from 4 transactions on August 20 to 64 transactions recorded on August 23.
Similarly to previous large transaction activity – The BCH price increases when large transactions increase. In this case, the price of BCH has increased by over 3% since August 20, from its opening price of $185, climbing to $192.
To better illustrate this, as seen below, the yearly high on June 30 saw 619 large transactions as the price peaked at its yearly high of $330. June 19 saw only 8 large transactions while BCH’s price was $106; a further 210% increase in price would follow as large transactions continue to rise.
The number of confirmed transactions exceeding $100,000 provides insights into the real-time changes in whale investors’ trading sentiment.
The timing of this uptrend suggests that BCH institutional investors are responding positively to EDX markets’ recent custody service announcement.
Notably, Bitcoin Cash price trends have become closely correlated to Whale Transactions over the last 3-months. Hence, if sustained, the buying pressure and market liquidity provided by the whales could help Bitcoin Cash smash the $200 resistance.
RSI Signal Has Entered the Recovery Zone
Following last week’s turbulent altcoin market crash, Bitcoin Cash has now entered the recovery zone. According to the daily Relative Strength Index (RSI) data, BCH RSI has cornered above the critical 30 mark, hitting 34 on August 24.
The Relative Strength Index data assesses the strength and momentum of an asset’s price movement. When the RSI corners above the 30 level from below after a significant price correction, it suggests growing bullish momentum.
Combined with the whale’s buying pressure, strategic retail investors may momentarily assume the worst is now over for the BCH price.
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BCH Price Prediction: Possible Breakout Toward $250
EDX Market’s custody service offering could now encourage its Wall Street clients to make larger bets on Bitcoin Cash and the three other listed crypto assets.
If the overall crypto market sentiment improves, this could propel BCH price toward the $250 range in the coming weeks.
The In/Out of Money Around Price data depicts current BCH holders’ purchase price distribution and confirms the bullish outlook. It highlights that Bitcoin Cash price will face relatively minimal resistance until it reaches the $220 territory.
As shown below, 56,320 holders had bought 1.47 million BCH at an average price of $220.85. If they chose to exit their positions they could inadvertently trigger a pullback.
However, if the whales intensify the buying pressure as predicted, BCH price could smash that resistance to reclaim $250.
Conversely, if the crypto market momentum remains negative, the BCH bears could force a retracement below $180. However, as shown above, 89,760 addresses had bought 312,190 BCH at the average price of $190. If they HODL, Bitcoin Cash could enter the recovery zone once again.
But if the bears push past that buy wall, BCH could finally drop below $180 for the first time since June 2023.
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