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Whale investors’ bullish stance could drive Bitcoin Cash price upward as it prods above $430 on May 3, halting a rut of five consecutive days of decline.
BCH Price Enters Rebound Phase after 43% Post-Halving Dip in April 2024
Bitcoin Cash faced significant turmoil in April 2024. The price decline began shortly after its latest Halving on April 3, which evolved into a 43% dip by month end as miners led the post-halving sell-off.
However, the recent price trend suggests that BCH bulls are poised for an imminent rebound phase. After closing April with 5 consecutive red candles, BCH is showing early signals of a potential bullish reversal in May.
At the time of writing on May 3, BCH price has bounced 10.8% in the last 48 hours to reclaim the $435 territory.
Whale Investors are Funding the BCH Price Recovery
Looking beyond BCH recent price performance, the underlying on-chain data trends suggest whale investors trading activity could be the main catalyst behind the 10.8% recovery in May.
The Santiment chart below depicts historical changes in balances of wallets holding at least 10,000 BCH (~$4.3 million).
As of April 3, the day of the halving, these Bitcoin Cash whales held a cumulative balance of 10.79 million BCH. While the post-halving sell-off intensified, the whales showed resilience. Rather than join the selling frenzy, they capitalized on the price dip to bolster their BCH holdings.
At the time of publication on May 3, these whale investors’ balances have hit 10.82 million BCH, reflection an addition of 30,000 BCH since the halving.
When valued at today’s prices, the whales have effectively invested $13 million in the last 30-days between April 3 and May 3, 2024, defying the 43% Bitcoin Cash price decline.
When whales keep up a buying stance during a market downturn, it often impacts prices positively. Firstly, a prolonged trend of large purchases from whale investors helps the underlying asset to hold higher support levels as it provides much-needed market depth and liquidity for panic sellers to exit without triggering major price downswings.
More importantly, whales are deemed to be more sophisticated and better informed about the market. As a result, other strategic retail investors are likely to gain confidence and mirror their bullish stance in the coming days.
BCH Price Forecast: $500 Target in Focus
Bitcoin Cash price looks set for an imminent rebound toward $500 in May 2024, especially if whale investors continue adding to their 10.82 million BCH holdings as observed in April.
In terms of key support and resistance levels to watch in the near-term, BCH price recovery could hit a major roadblock at the $460 level.
As seen above, 1.74 million addresses had acquired 3.9 million BCH at the minimum price of $460.19. If those investors hold firm, Bitcoin Cash price could flip the resistance ahead towards $500.
But in the event of another major price downswing, BCH bulls can rely on the looming buy-wall at $370 for short-term support.