Bitcoin Cash (BCH) saw a 10% decline to $225 on Monday, as it struggled to surpass the resistance level of $250. This price fluctuation comes in the wake of contrasting actions by BCH miners and large-scale investors, often referred to as whales.
Miners have been capitalizing on the cryptocurrency's rally to a yearly peak, which reached $329 in June. Since then, they have liquidated their block rewards, leading to a significant withdrawal of $590 million and reducing their reserves from 8.37 million to 5.76 million BCH since June 19, according to data from IntoTheBlock chart. This action has increased the market supply and exerted downward pressure on BCH prices.
On the other hand, bullish whales have injected approximately $4.5 million into BCH amidst positive developments in the broader crypto industry. These include the approval of ETH Futures ETFs and encouraging Non-Farm Payrolls (NFP) reports.
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.
Nonetheless, if BCH loses its critical support level at $200, it could set off 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.
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