Can Bitcoin Cash Whales Push the Price Rally Toward $300?

After defend­ing the $180 sup­port last week, Bit­coin Cash (BCH) reclaimed $220 on Mon­day to emerge as the top gain­er among the 20 largest cryp­to projects by mar­ket cap­i­tal­iza­tion. On-chain data analy­sis exam­ines some of the vital indi­ca­tors that could push BCH’s price toward the $300 mark dur­ing the next bull rally.

Bit­coin Cash (BCH) price sent hold­ers into a pan­ic mode last week, com­ing close to los­ing the crit­i­cal $180 sup­port lev­el. How­ev­er, bull­ish whales braved the bear­ish head­winds, trig­ger­ing a price recov­ery. On-chain data analy­sis exam­ines how high the BCH price ral­ly could go if the upcom­ing Fed rate announce­ment on Sep­tem­ber 20 bodes well for risk-on assets.

Despite Bearish Headwinds, BCH Whales Stepped Up the Buying Pressure

Bit­coin Cash (BCH) price decreased in the first ten days of Sep­tem­ber, drop­ping 19% from $226 to $184. But despite the intense bear­ish head­winds, the bull­ish cryp­to whales main­tained a bull­ish stance. 

On-chain data shows how the whales hold­ing 1,000 to 100,000 BCH coins have played a piv­otal role in push­ing Bit­coin Cash to up the top gain­ers’ chart this week. Between August 31 and Sep­tem­ber 18, they bought the dip to the tune of 70,000 BCH coins, increas­ing their bal­ances from 7.85 mil­lion BCH to 7.92 BCH. 

Whale investors are high-net-worth investors or cor­po­rate enti­ties hold­ing a sig­nif­i­cant amount of cryp­tocur­ren­cy, ide­al­ly $100,000 or more. Due to their finan­cial mus­cle, their trad­ing activ­i­ty often moves the mar­kets significantly. 

At cur­rent prices of $222, the 70,000 BCH the whales have accu­mu­lat­ed this month is worth approx­i­mate­ly $15.5 mil­lion. The chart above illus­trates that despite the price uptrend, they are not show­ing signs of slow­ing down yet. 

Notably, cor­po­rate enti­ties are known to be sen­si­tive to changes in inter­est rates set by cen­tral banks like the Fed­er­al Reserve, as it impacts yield obtained on oth­er invest­ment alternatives. 

Con­sid­er­ing that Reuters econ­o­mists antic­i­pate a rate freeze, the BCH whales will like­ly step up the buy­ing trend after the Sept 20 Fed Meeting. 

 Retail Investors are Yet to Get In on the Act

Despite the recent dou­ble-dig­it price gains, Bit­coin Cash is still fly­ing under the radar of many retail mar­ket par­tic­i­pants. As depict­ed below, while Bit­coin Cash has been on a tear since Sep­tem­ber 11, Social Dom­i­nance has trend­ed down­ward from 0.87% on Sep­tem­ber 12 to 0.55% on Sep­tem­ber 18.

Social Dom­i­nance mea­sures the per­cent­age of social media traf­fic a cryp­tocur­ren­cy net­work attracts in direct com­par­i­son to the top 50 most talked about projects. Dur­ing a price ral­ly, a down­trend in Social Dom­i­nance means the project is not yet attract­ing extreme media hype and retail mar­ket attention. 

This could mean the Bit­coin Cash price is yet to hit a local top and has room to score more gains before the mar­ket eupho­ria sets. 

In con­clu­sion, if the Fed holds rates unchanged as pre­dict­ed, Bit­coin Cash whales could inten­si­fy the buy­ing pres­sure even fur­ther. And if the retail investors also ape in on the ral­ly, both blocs of investors could push the BCH price ral­ly to $300. 

BCH Price Prediction: The Bullish Whales Could Target $300

From an on-chain per­spec­tive, the whales could trig­ger anoth­er BCH price ral­ly toward $300 ter­ri­to­ry, espe­cial­ly if the upcom­ing Fed rate announce­ment trig­gers a favor­able response across the cryp­to market. 

The In/Out of Mon­ey Around Price data, which depicts the pur­chase price dis­tri­b­u­tion of cur­rent Bit­coin Cash hold­ers, also val­i­dates this bull­ish thesis.

It shows that if the BCH price scales the ini­tial resis­tance around $245, the bulls could gain momen­tum to push for $300. ​​As shown below, the 509,780 address­es bought 1.68 mil­lion BCH at the max­i­mum price of $246, the largest resis­tance clus­ter on the road at $300.

But if the Fed meet­ing out­come buoys the whales’ opti­mism, the BCH price ral­ly could scale that obsta­cle and reclaim the $300 lev­el for the first time since July 2023.

Con­verse­ly, the bears could seize con­trol if the Bit­coin Cash price drops below the $180 lev­el. How­ev­er, as shown below, 162,580 address­es had bought 2.08 mil­lion BCH at the min­i­mum price of $211.

They could offer con­sid­er­able sup­port, espe­cial­ly if the retail investors also buy in on the price rally.

Although unlike­ly, if that $211 sup­port lev­el caves in, the BCH price could even­tu­al­ly drop to $180.