2023-8-15 14:15 |
Bitcoin Cash (BCH) bulls have prevented a significant price drop below the $230 support level over the past week. On-chain data provides insights into potential price movements to anticipate if the BCH bears eventually seize control.
Steady network usage and increased transactional activity have held the BCH price steady above the $200 level for two consecutive months. But of late, long-term holders have continued to book profits. Here’s what investors can expect if BCH loses the critical $230 support.
Bitcoin Cash Long-Term Holders Continue to Cash OutBitcoin Cash has attracted sufficient fundamental network demand to support the ongoing bull rally that saw it break above $320 toward the end of June. But on-chain data shows that long-term investors have continued taking out capital and lowering BCH prices in the process.
Heading into mid-August, the profit-taking trend among the bears has not abated. As shown in the chart below, BCH has recorded another significant spike in Age Consumed this week.
On August 14, BCH Age Consumed edged closer to 3 million, higher than the previous two days combined.
Bitcoin Cash (BCH) Price Drops | Age Consumed, Aug 2023. Source: SantimentBy multiplying recently-traded coins by the number of days since they were last moved, Age Consumed evaluates changes in long-term investors’ trading activity. This week, a triple-digit spike in BCH Age Consumed means that many long-term holders are still cashing in.
If this trend continues, it could prevent the BCH bulls from staging a significant price recovery.
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The BCH Price Momentum is Still Largely NeutralBitcoin Cash retained significant network demand after racing to euphoric price peaks in June. In affirmation of this stance, Relative Strength Index data, the BCH price momentum is still largely neutral despite bearish pressures from long-term investors booking profits.
As depicted below, the BCH daily RSI has held steady within the neutral zone in the mid 40’s since the start of August.
Bitcoin Cash (BCH) Price Drops | RSI data, Aug 2023. Source: CryptoWavesThe Relative Strength Index data evaluates the strength and momentum of an asset’s current price trend. The 70 and 30 are regarded as critical extreme RSI values. And when it trends in the mid-40s, as observed above, it indicates that the recent price movements are relatively balanced.
Evidently, while the long-term investors are selling, other strategic BCH network participants have been buying up, piling on fresh demand.
Hence, with no significant bias towards buying or selling pressure, Bitcoin Cash will likely hold above the $200 support level as things stand.
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BCH Price Prediction: Consolidation above $200 Before Potential RallyWhile the crypto market awaits the next industry-wide rally, BCH will likely consolidate above the $200 support.
The In/Out of Money Around Price (IOMAP) data, which shows the purchase price distribution of current holders, also lends credence to this bullish price prediction.
As seen in the chart below, 39,000 addresses had bought 1.41 million BCH tokens at an average price of $217.51. Notably, this cluster of holders offers the most significant supply wall around the current 20% price boundaries.
And if that support level gives way, the next buy-wall at $205 territory could still prevent BCH from dropping below $200.
Bitcoin Cash (BCH) Price Prediction | IOMAP data, Aug 2023. Source: IntoTheBlockBut, if the momentum turns positive, the BCH bulls could enter a recovery mission toward the $280 region. In that case, the 164,000 addresses that bought 1.31 million BCH coins at the average price of $240 could trigger a pullback.
However, if that resistance gives way, Bitcoin Cash could successfully reclaim $300.
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The post Bitcoin Cash (BCH) Sell Pressure Intensifies: Is $200 Support Under Threat? appeared first on BeInCrypto.
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