Bitcoin Cash Struggles Amidst Miners’ Withdrawals and Bullish Whale Activities
BCH Faces Resistance at $250
Bitcoin Cash (BCH) experienced a 10% decline on Monday, falling to $225 as it struggled to surpass the resistance level of $250. This price fluctuation follows contrasting actions by BCH miners and large-scale investors, often referred to as whales.
Miners Liquidate Block Rewards
Miners have taken advantage of the cryptocurrency’s rally to a yearly peak, reaching $329 in June. Since then, they have liquidated their block rewards, resulting in a significant withdrawal of $590 million. As a result, their BCH reserves have decreased from 8.37 million to 5.76 million since June 19, according to data from IntoTheBlock chart. This action has increased the market supply and exerted downward pressure on BCH prices.
Bullish Whales Inject Capital
On the other hand, bullish whales have injected approximately $4.5 million into BCH amidst positive developments in the broader crypto industry. These developments include the approval of ETH Futures ETFs and encouraging Non-Farm Payrolls (NFP) reports.
Technical Indicators Suggest Short-Term Bounce
Technical indicators such as the Stochastic and Commodity Channel Index (CCI) suggest a potential short-term bounce or consolidation between the current support at $218 and the middle Bollinger Band at $226.16.
Critical Support Level at $200
However, if BCH loses its critical support level at $200, it could trigger a bearish reversal towards $180. Conversely, if oversold conditions lead to a bounce, there may be an aim for the upper Bollinger Band around $236.46.
This article provides insights into the challenges faced by Bitcoin Cash, including miners’ withdrawals and bullish whale activities. While miners have been capitalizing on the cryptocurrency’s rally by liquidating their block rewards, whales have injected capital into BCH. Technical indicators suggest a potential short-term bounce, but the critical support level at $200 is crucial. The article aims to offer a comprehensive analysis of the current state of Bitcoin Cash without resorting to technical jargon or complex sentences.
