Bitcoin Cash (BCH) Price Surge to $300 Predicted as Whales Invest $35M

FXEmpire.com -

Bitcoin Cash (BCH) price breached the $280 territory on Feb 12, but a daunting sell-wall at that key resistance area sent BCH into a 12% short-term pull back to a weekly bottom of $258. 

On-chain data shows that crypto whales are rapidly buying BCH amid the current dip. Is this a precursor to a major breakout towards $300? 

BCH Price Dips 12% after a Remarkable 35% Rally 

Experts anticipate that the upcoming Bitcoin halving will see at least 20% of BTC miners go offline. After bitcoin block rewards are cut from 6.25 BTC to 3.125 BTC in April, a lot of miners could become unprofitable. 

This opens up the doors to a lot of them switching attention and dedicating their resources towards validating and mining other lightweight Proof of Work (PoW) coins like Bitcoin Cash (BCH), Litecoin (LTC) and Kaspa (KAS). 

In a bid to front run potential gains from this narrative, investors appear to have started piling on capital inflows into the BCH ecosystem, as BTC price rallied. 

The chart below shows that while BTC price rose 37% to a yearly peak of $52,858 between Jan 23 and Feb 15, BCH price also recorded a comparable 34% gain.  

Bitcoin Cash (BCH) Price Performance vs. Bitcoin (BTC) | Source: TradingView

Evidently the chart above shows that Bitcoin cash (BCH) price action has been closely correlated to BTC in recent weeks.

However, that changed on Feb 15 when BCH price suffered a significant pullback after crossing $290. At press time on Feb 18, BCH entered a 12% correction.

But with BTC still holding firm at the $50,000 support, the close correlation and the halving narrative suggest that BCH is likely to hold firm above the psychological support level at $250, possibly, make an early rebound. 


Crypto Whales are Buying the Dip in Anticipation of another Leg-Up.

In further confirmation of the bullish stance, on-chain data shows that crypto whales are not throwing in the towel on BCH despite the double-digit price pull back. Instead, they are rapidly buying the dip.

Santiment supply-held by addresses chart tracks real time changes in the number of coins deposited in large-holder wallets. 

As seen below, whales holding balances of 100,000 BCH (~$250,000) have been on a steady buying spree amid the price downswing.

When BCH price peaked at $293 on Feb 14, the whales held a balance of 7.81 million BTC. But as prices began to drop, they instantly swooped to start buying the dip. 

Since Feb 14, the whales have acquired a total of 130,000 BCH, bringing their balances to 7.94 million BCH at press time on Feb 18. 

Bitcoin Cash (BCH) Whales Wallet Balances vs. Price | Source: Santiment

The newly-acquired coins are worth approximately $36 million when valued at the 10-day simple moving average price of $269 per coin. This signals that crypto whales have intensified their buying pressure in the last 3-days taking advantage of the 12% price decline.  

If the whales maintain this optimism, it’s only a matter of time before retail investors also take the cue. 

BCH Price Forecast: Imminent Rebound Above $300?

In summary, considering the whales buying trends, and close correlation to BTC in recent weeks, BCH price looks set for an imminent rebound in the coming week.

And considering that BCH had recently breached the $290 barrier on Feb 14, the bulls could now set their sights higher above the $300 territory during the next rally. 

However, in the short-term, the Bitcoin Cash bulls face major resistance at the $280 area. IntoTheBlock’s in/out of the money metric groups existing BCH holders according to their entry prices.

It currently shows that 145,620 addresses had bought 1.17m BCH at the average price of $276. 

A wave of sell-off from those holders could prevent BCH price from reclaiming the $280 territory. But if the bullish whales buying trend continues it could trigger a decisive breakout above that resistance, opening the doors to a $300 retest as predicted. 

Bitcoin Cash (BCH) Price Forecast, February 2024 | Source: IntoTheBlock

Still, the bears could effectively negate this bullish narrative, if they force a reversal below $220. However, the buy-wall at the $250 area will likely prevent this. 

As seen above, 131,730 addresses had bought 1.71 million BCH at the average price of $249. By making frantic covering purchases to avoid slipping into a net loss position those investors could trigger a major rebound.

This article was originally posted on FX Empire

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