Is Bitcoin Cash (BCH) Price Momentum at Risk ? -Key Indicators

Key Insights:

• After failing to clear the $250 resistance last week, Bitcoin Cash (BCH) price has tumbled 10% to hit $225 on Monday, October 9.
• On-chain data shows that Bitcoin Cash Miner and Whale investors have taken on opposing positions. 
• Losing the $210 support level could send the BCH price into a tailspin toward  $180.

The price of Bitcoin Cash (BCH) has experienced a sharp 10% drop, falling to $225 on October 9. This comes after the bulls’ failed attempts to break past the $250 resistance level last week. As miners and crypto whales take opposing positions, the BCH price faces uncertainty in the weeks ahead.

Bitcoin Cash Miners Triggered The Recent Price Decline

Bitcoin Cash raced up the 2023 top gainer’s list, with a remarkable 150% rally in June, propelling BCH price to a yearly peak of $329. However, on-chain indicators suggest that BCH miners are capitalizing on this rally to liquidate their block rewards.

As depicted in the IntoTheBlock chart below, the miners began the sell-off almost immediately after the BCH price rally commenced on June 19.

And between June 19 and October 9, they have depleted now their reserves from 8.37 million to 5.76 million BCH.  Notably this is first time since 2018, that Bitcoin Cash miners’ reserves have dropped below 6 million BCH.

Valued at the current market price of $225 the BCH miners have withdrawn 2.61 million coins worth approximately $590 million within the last 3 months. And notably, $106.2 million of that was sold in the past week, after BCH price hit $250 on October 1. 

The persistent decline in miners’ reserves, had increased market supply and puts downward pressure on BCH prices.

Unsuprisingly,  BCH price has reversed from $250 to $225 between October 1 and October 9, largely due to miners selling off their rewards.

However, bullish whale investors have injected fresh capital into BCH. This influx of approximately $4.5 million comes at a time when positive developments in the crypto industry, such as the approval of ETH Futures ETFs and positive Non-Farm Payrolls (NFP) reports, have boosted corporate confidence.

BCH Price Prediction: The $200 Support Level is Critical

Considering the oversold conditions on the Stochastic and Commodity Channel Index (CCI) indicators, there’s a possibility of a short-term bounce or consolidation from the current price of $218.

In the short term, a potential price range could be between $218 (current support) and the middle Bollinger Band around $226.16. If the oversold conditions lead to a bounce, the asset could aim for the upper Bollinger Band around $236.46.

However, traders should exercise caution as the overall trend has been bearish, and it’s essential to monitor the asset’s reaction to the key support level at $202. Losing that critical support may trigger a bearish reversal toward $180.

Conversely, if BCH manages to break above $250, a cluster of resistance awaits around that level. The outcome will depend on whether BCH holders book profits or trigger a reversal.

In summary, Bitcoin Cash faces a challenging period as miners and whales clash, impacting its price trajectory. The $200 support level and the $250 resistance level will likely be key battlegrounds in the coming weeks.