beincrypto.com
Bitcoin Cash (BCH) price hit a 13-month peak of $235 on Wednesday morning, sending its monthly gains well above 100%. On-chain data suggests that the BCH price rally may not be over yet. What next for Bitcoin Cash after an excellent June 2023 performance?
Tuesday, June 20, was the official launch of the EDX Markets. The new non-custodial cryptocurrency exchange is targeted at institutional clients and backed by Wall Street bigwigs such as Charles Schwab, Fidelity, and Citadel Securities.
To satisfy regulators, the exchange has listed only four cryptocurrencies, Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. On-chain data reveals that Bitcoin Cash has benefitted immensely from this unique market development.
Institutional Investors are Cashing in on the BCH Rally
Since EDX Markets went live on June 20, Bitcoin Cash has witnessed a progressive spike in whale transactions. The Santiment chart shows that on June 20, only 102 Large Transactions were recorded on the Bitcoin Cash network. But remarkably, by the close of June 27, that figure has soared 700% to 766 transactions.
Notably, this is the first time since March 2022 that BCH whale trading activity has surpassed 700 transactions in a single day.
Whale Transactions measures the trading activity of institutional investors by summing up the daily number of transactions exceeding $100,000.
When whales increase their bets on a token, it reveals their confidence in the project’s short-term price prospects and long-term viability.
And considering that most institutional holders typically hold for longer periods, it could put some upward pressure on BCH’s price in the coming days.
The Retail Investors are Still Interested in Bitcoin Cash
Institutional investors reacting to the EDX Markets launch have played a critical role in BCH’s rise to a new yearly peak. However, on-chain data shows that the mass retail market participants are also turning up their bullish activity.
The Santiment chart below depicts that Daily Active Addresses on the Bitcoin Cash network have gone up a notch this week.
Between June 22 and June 28, it has risen from 302,030 to 376,620 active wallet addresses. This represents a 25% rise in daily user activity within the last seven trading days.
The Daily Active Addresses metric evaluates daily network usage by tracking the number of unique wallet addresses carrying out transactions on the network.
When it rises considerably, as seen above, it signals that many network participants are carrying out transactional activities.
In summary, the positive sentiment among whale investors and the persistent rise in retail market participants are critical bullish factors that could propel BCH to higher peaks.
Read More: Best Upcoming Airdrops in 2023
BCH Price Prediction: Time to Smash $260?
Considering the abovementioned factors, BCH bulls seem poised to smash the $250 resistance in the coming weeks. But first, the bulls must break above $240 to be confident of the bullish price prediction.
Notably, the 65,080 investors who had bought 80,000 BCH at the maximum price of $240 could book some profit. If they do, it could put an end to the BCH rally.
But if the bullish market sentiment is strong enough to smash through that resistance, Bitcoin Cash could rally toward $260.
Conversely, the bears could seize control if BCH slips below $225. But,111,570 investors that bought 50,530 BCH coins at the average price of $225 could prevent the drop if they hold firm.
However, if that support level fails to hold, then BCH could sharply retrace town $200.