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Bitcoin Cash (BCH) is captivating the attention of the crypto community with its ongoing price surge. The recent inclusion of BCH on EDX, a Citadel Securities-backed crypto exchange, has sparked fresh interest in this digital asset.
As investors eagerly monitor its progress, the price of BCH on CoinGecko stands at $291.80, showcasing a 24-hour rally of nearly 7% and an impressive seven-day surge of 27.5%.
Source: Coingecko
The overall bullish sentiment in the crypto market has contributed to the positive trajectory of BCH. As cryptocurrencies gain mainstream acceptance and adoption, investors are seeking alternatives beyond the traditional giants like Bitcoin and Ethereum, and BCH has emerged as a viable contender.
However, the question on everyone’s mind is whether Bitcoin Cash can sustain its current bullish streak.
BCH Whales Pause Buying Spree Amidst Price Surge
While the recent listing on EDX has undoubtedly played a part in this rally, on-chain data reveals an intriguing aspect of the price surge. A cluster of Bitcoin Cash whales holding significant amounts of 1 million to 10 million coins has emerged as a pivotal player in driving last month’s rally.
Source: Santiment
Between June 21 and June 30, these BCH whales accumulated 170,000 coins, which amounted to approximately $52.4 million in value. Their substantial purchases had a significant impact on the asset’s price, as whales possess substantial financial power and strategic influence on other investors. When whales buy more coins, it often leads to an increase in the asset’s price.
However, an interesting development emerged in July. The same cluster of BCH whales, who were actively accumulating coins during the June rally, has conspicuously paused their buying spree. Specifically, between July 1 and July 4, their total BCH balances remained relatively stable, hovering around 1.51 million coins.
BCH market cap currently at $5.6 billion. Chart: TradingView.com
The Future Trajectory Of Bitcoin Cash
The whales’ decision to halt their buying activity raises questions about the current market sentiment surrounding Bitcoin Cash. Are these whales taking a cautious approach, waiting to assess the market before making further moves? Or does their pause indicate a temporary lull in the BCH price surge?
Understanding the behavior of large-scale investors such as whales is essential in predicting market trends. Their actions often influence the sentiments and decisions of other traders and investors. The temporary pause in their buying activity could potentially impact the short-term price dynamics of Bitcoin Cash.
As the market eagerly watches Bitcoin Cash, the question arises as to whether the recent price surge can be sustained without the continued support of these influential whales. The coming weeks will shed light on the market’s overall sentiment and the role these whales will play in shaping the future trajectory of Bitcoin Cash.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Crypto Economy