Bitcoin Cash (BCH) Long-term Holders Invest $76M Despite 7% Price Dip

Price Insights:

Bitcoin Cash (BCH) price opened trading at the $480 territory on Saturday, April 27, closing the week 7% in the red.  On-chain data showed that BCH long-term holders continue to accumulate more coins amid the price dip.

Is Bitcoin Cash price on course for a parabolic breakout towards $600 in the days ahead?

Bitcoin Cash Bulls Succumb to Post-Halving Pressure

The Bitcoin Cash network executed its second ever Halving event on April 3 2024, sparking speculations of the perennial post-halving crash that has often plagued major Proof-of-Work (PoW) coins over the years.

Bearish headwinds surrounding the halving saw BCH prices decline 37% in the first-half of April 2024. Over the last two weeks, efforts to reverse the post-halving losses have fallen flat.

The chart above shows how BCH price recovery phase at the start of the week rejected as the bulls failed to establish a steady support base above $500 level. Since rejecting at the $523 weekly top recorded on April 23, BCH price has now decline 7% to find support around the $475 territory.

But despite the negative sentiment triggered by Bitcoin Cash halving, a closer look at the underlying on-chain data suggest key stakeholders may be anticipating a price breakout in the days ahead.

BCH Long-term Holders Invest $76 million despite 7% Price Dip

BCH has tumbled 7% within the weekly timeframe. But, looking past the price action, Bitcoin Cash long-term investors have shows remarkable resilience that could be pivotal for an early rebound.

IntoTheBlock’s Coins by Time-Held chart below, tracks real-time time changes in the number of BCH coins that have remained unmoved for at least 1-year or more. This serves as a proxy for tracking the dominant sentiment among long-term investors.

At the eve of the Bitcoin Cash Halving event on April 2, BCH long-term holders held a total of 11.54 million BCH in their cumulative balances. But rather than sell amid to the post-halving price dip, the long-term holders have remained in accumulation mode.

At the time of writing on April 27, BCH long-term holders balances now stands 11.7 million, marking an increase of 160,000 BCH since the halving.

Effectively, BCH long-term holders have show remarkable resilience, ignoring the fears of the ongoing post-halving sell-off, and flaring geo-political tensions. Valued at the current prices of $478 per coin, the long-term holders’ newly-acquired 160,000 BCH are worth approximately $76.4 million.

Typically, such a prolonged increase in long-held coins during periods of price decline could have a positive impact on the underlying assets’ price action.

Firstly, it signals that despite the recent price struggles majority of Bitcoin Cash existing holders remain optimistic of the asset’s near-term price prospects, which could buoy the confidence of prospective new entrants.

But, more importantly, coins in custody of long-term holders are temporarily taken out of the short-term market supply.

Hence, the $76 million in drop-off in BCH spot market supply since the halving could slow down the selling pressure, and help propel prices towards the $600 mark during the next recovery phase.

BCH Price Forecast: $600 Target in Focus

In the near-term, Bitcoin Cash price recovery phase will likely to advance towards the $600 area, especially if coins held by long-term holder add to their $73.6 million post-halving acquisition.

Coinglass’ Liquidation Map data, which shows the value of leveraged futures contracts active at key price levels also affirms this bullish Bitcoin Cash price forecast.

As depicted below, the number of BCH LONG leverage positions has now exceeded the SHORTs by a considerable margin, signaling overwhelming expectations of an imminent bullish price reversal.

BCH short-traders are now at risk of losing $5 million in potential liquidations if price surge another 10% to reclaim $600. In comparison, the bulls could lose over $20.8 million if price fall below $470 support level.

But, given that the bulls have significantly more skin in the game, BCH price advancing towards $600 is the more likely outcome.

If that scenario plays out as expected, the Bitcoin (BTC) Halving and imminent US Fed rate cuts are some other bullish catalysts that could come in play for BCH to approach the $1,000 mark the year unfolds.