- Bitcoin Cash is 21 percent up in the last seven days, but analysts see a pullback in the near term to $210.
- Whales have reportedly stopped accumulating the asset since the start of July after aggressively amassing it in June.
Bitcoin Cash (BCH) started the week on the right foot and has gone ahead to extend its surge to 21 percent in the last seven days. According to market data, BCH is trading at $295. This is quite interesting considering the fact that it started July with a 13 percent price correction. Generally, it recorded over 150 percent gains in June to trade above $300, the highest since May 2022.
While assessing the catalyst for the June rally, it was observed that whales possessing 1 million to 10 million coins played a huge role. A total of 170,000 BCH ($52.4 million) was purchased between June 21 and June 30.
These whales have unexpectedly stopped buying the asset since the start of July. Their total balance was reportedly around 1.51 million BCH between July 1 and July 4. It is, therefore, safe to conclude that the sentiment among large institutional investors is in decline. An increasing whale wallet balance causes the asset price to rise due to their power and influence according to the report.
On June 28, 376,000 active users were recorded on the network, which is said to be a recent high. Another reason for the June performance is linked to the US Securities and Exchange Commission lawsuit against Coinbase and Binance as investors move to Proof of Work assets. It is believed that purchases like BCH could benefit from the Commission’s attack on cryptos like Solana and Cardano.
Analyst’s Short-term Prediction
Based on the current market data, Bitcoin Cash could trigger a bearish run if whales hold their neutral position for a long time.
For the past week, user activities across the Bitcoin Cash ecosystem have constantly declined. As of July 4, the daily active address had declined by 23 percent to 309,000. This is a very important metric as the active addresses indicate changes in user activities. It tracks the total number of unique wallet addresses facilitating transactions. Despite the asset having a bullish sentiment, it is observed that the demand is slowly declining, and could send the price below $250. However, support could be fixed at around $265 depending on the reaction of bulls.
In the last 24 hours, Bitcoin Cash is 1.35 percent down, and the retreat is a result of the asset moving to an extreme greed zone.
An analyst has observed that Bitcoin Cash has formed three black crows patterns. This happens when three red candles follow each other. It is said to be higher than the 50-day and 100-day moving averages. However, the Relative Strength Index (RSI) is below the overbought region.
With this, the analyst predicts that there could be a pullback in the near term before staging a comeback. The analyst expects the downside to send the price down to around $210 – a 25-day moving average. Therefore, This could be a perfect entry point for investors wanting to accumulate more of the asset.
