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Bitcoin Cash (BCH) price has found support at the $450 territory on Wednesday May 9, after bears averted a $500 retest 48 hours earlier.
Crypto whale investors have been spotted capitalizing on the BCH price pullback this week to stack up their holdings. Is Bitcoin Cash price setting up for a parabolic breakout above $600 in May 2024?
Is Bitcoin Cash Price Going Up?
Bitcoin Cash price has regained upward momentum in May 2024 after a post-halving sell-off had triggered a 40% pull back in April. The BCH halving executed on April 3 has sparked fears of a major market crash, which prompted investors to take a caution position on BCH over the past month.
That concern seems to have eased up as BCH began May 2024 with a 6 consecutive green candles and delivering a blistering 25% rally in the process.
As seen above, the BCH price rally hit a roadblock at $500 territory on Tuesday, May 7. Fatigued bulls and swing traders have since succumbed to a 9% BCH pull back in 48 hours, as prices tumbled toward $448 mark at the time of writing on May 9.
Bitcoin Cash Whales Invested $60 Million after Post-Halving Sell-off
Looking beyond the 9% price remission, on-chain movements observed among whale investors suggest the Bitcoin Cash rally is far from over.
Santiment chart below presents historical changes in the stash of coins controlled by whale wallets holding at least 100,000 BCH (~$44.8 million). This provides aria-describedby="caption-attachment-80264">
As depicted above, there have been frenetic swings in the Bitcoin Cash whales activities over the past month. Following the Bitcoin Cash halving event on April 3, the whales entered a major sell-off frenzy, cutting down their balances to 4.17 million at close of April 13, which played a pivotal role in what became a 43% price crash by the end of the month.
However, as the post-halving market FUD (Fear Uncertainty and Doubt) eased up, the resurgent whale appears to have returned to accumulation mode in May 2024.
The chart above shows that since the BCH price rally halted on May 7, rather than join the selling frenzy, the whales rapidly acquired 100,000 BCH behind the scenes.
Valued at the current BCH price, the whales have effectively invested approximately $50 million within the last 48 hours.
Given that whale investors often have longer-term investment horizons, taking out such a large amount of coin from the circulating supply could set BCH up for a price breakout towards $600 as May 2024 unfolds.
More so, seeing whales enter buying mode, strategic bull traders on the sidelines could consider it a positive signal to enter the fray in the day ahead, injecting fresh capital inflows and ultimately driving the next phase of the Bitcoin Cash price rally in May 2024.
Bitcoin Cash Price Forecast: $600 Target in Focus
Bitcoin Cash price is currently hovering around the $450 mark at the time of writing on May 9 down 9% from monthly peak of $493. However, whales accumulating $50 million worth of BCH in the last 48-hours, signals that investors can anticipate an imminent price rebound towards $600 in the coming days.
However, to validate this bullish BCH price forecast, bulls must first establish a steady support cluster above the 20-day SMA price level at $470.
The Bollinger band indicator further highlights that the $470 resistance poses the largest near-term resistance to a potential BCH price uptrend.
In terms of near-term support levels, bulls can rely on the $417.5 cluster to prevent a major price reversal in the days ahead.