Bitcoin Cash Price Forecast: Can BCH Hit $600 in May 2024?

Insights:

Bitcoin Cash (BCH) price finally the reclaimed $500 mark on April 24, after a post-halving sell-off had sent BCH spiraling to a monthly low of $454 on April 12. On-chain data shows how BCH miners switching into accumulation mode coincided with the price recovery phase over the past two weeks. 

Will strategic bull traders take the miners’ bullish cue and propel prices towards $600 in the May 2024?

Bitcoin Cash Miners Back in Accumulation Mode after Halving Sell-Off

On April 3, 2024, the Bitcoin Cash (BCH) network executed its second halving event. As widely anticipated, the landmark network event was greeted by a large scale sell-off which sent prices tumbling below $460 for the first time in 21-days.

As seen above, BCH price opened trading on April 1 at $701, before tumbling 37% to the local bottom of $454 on April 13. On-chain data shows that BCH miners rapidly offloading their reserves in the wake of Halving had played a critical role in that price downtrend.

But now, 10-days after the Halving, it appears that miners have switch back to accumulation mode.

Miners Have Acquired 110,000 BCH Since Halving

Between Jan 1 and April 12, Bitcoin Cash miners offloaded 2 million BCH, cutting down their reserves from 7.7 million BCH to 5.7 million BCH. But curiously, now, 10-day after the Halving, the miners now appear to have switched to accumulation mode.

The IntoTheBlock chart above shows that the miners have halted the year-long sell off  on April 12. And at the time of writing on April 24, they have added 110,000 BCH worth approximately $53.1 million to their reserves.

When a cryptocurrency halving cycle rolls arounds, strategic investors often look towards miners trading activity for insights on the asset’s short-term price prospects. Hence, this rare market trend could propel BCH price into a parabolic rally in May 2024 and beyond.

Bitcoin Cash Price Forecast: BCH undervalued at $500

Bitcoin Cash price rose as high as $500 within the daily time-frame April 24, before retracing towards $483. But if bull traders take a cue from the BCH miners $53.1 million accumulation frenzy over the last two-weeks, Bitcoin Cash price will likely enter another leg-up towards $600.

In further affirmation of this bullish forecast, the relative strength index (RSI) indicators trending at 43.61 shows that BCH is still in undervalued territories despite the 14.35% price rebound in the last 10-days.

For the bulls seize control of the Bitcoin Cash price trend as predicted, the must first scale the looming sell-wall at the $556 territory. Establishing a steady support above the key resistance level could open the doors to a $600 retest.

But on the flip side, if the bears force another downswing, BCH must hold the $393 support to avoid a widespread panic sell-off in the near-term.