Bitcoin Cash Price Stalls as Whales Stop Buying
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Bitcoin Cash (BCH) had a stellar performance in June, surging over 230% and breaking above $300 for the first time since May 2022. But the bulls seem to have lost their momentum in July, as the price has corrected by 10% so far.
One possible reason for this slowdown is the change in behavior of the Bitcoin Cash whales, who hold between 1 million and 10 million BCH coins. These big players were instrumental in driving the June rally, as they accumulated a staggering 170,000 BCH coins worth about $52.4 million in just 10 days, according to on-chain data from Santiment.
However, since the start of July, they have stopped buying and have kept their BCH balances steady at around 1.51 million coins. This indicates that they are either waiting for a better entry point or losing confidence in the BCH prospects.
Whales’ Sentiment in Bitcoin Cash Could Influence Other Investors
The Santiment Whales Wallet Balances metric tracks real-time changes in the number of coins held by large institutional investors. It is a useful indicator of trading sentiment and the potential impact of whales on the market.
When whales buy more coins, they usually boost the price and inspire other investors to follow suit. Conversely, when they stop buying or start selling, they can trigger a sell-off and a price drop.
Therefore, the current pause in whale buying activity could be a bearish sign for Bitcoin Cash, especially if it persists for a longer period. Other investors might interpret it as a lack of faith in BCH and decide to exit their positions.
Bitcoin Cash will need to resume its bullish momentum soon to avoid a major retracement toward $250, which is a key support level. Otherwise, the June rally could turn out to be a flash in the pan.
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