Bitcoin price dropped to $26,100 at the time of writing this article. The recent Fed announcement, which we reported as breaking news, had an impact on this. Due to the recovery from the Nvidia effect, US stock markets also experienced a decline. Although the tide has quickly turned, BCH, the fork coin that emerged as a competitor to Bitcoin, is showing some signs of recovery.
BCH reached $330 in June after being listed on a Wall Street-backed crypto exchange. Despite starting with a 300% rally supported by EDX Markets, the fork coin could not escape the negative sentiment in the overall market. In the early days, BCH, which was born with the fork of the Bitcoin network, defined itself as better than BTC. However, when we look at the annual chart, we can see that this is not true at least in terms of price.
BCH, one of the four cryptocurrencies listed on EDX Markets, witnessed a noticeable increase in whale transactions this week. As seen below, BCH whale activity increased from 4 transactions recorded on August 20 to 64 transactions recorded on August 23.
The price reached $330, the highest level of the year, with 619 major transactions on June 30. When the price of BCH was $106, there were only 8 major transactions on June 19. As major transactions continue to increase, there could be a further 210% increase in price. The timing of this upward trend indicates that BCH institutional investors responded positively to EDX Markets’ latest custody service announcement.
In particular, the price trends of Bitcoin Cash have become closely related to Whale Transactions in the last 3 months. Therefore, if the buying pressure and market liquidity provided by whales continue, it may help Bitcoin Cash break the $200 resistance.
In the short term, investors who bought at a cost of $220 have a total of 1.47 BCH. This indicates that the price may encounter strong resistance. However, if whales intensify buying pressure as predicted, the BCH price can reclaim $250 by breaking this resistance.
However, if the BTC price, which is struggling to stay below $26,100 at the time of writing, disappoints optimistic expectations, BCH bears may push the price below $180. If this happens, it will be a first since June.