Crypto markets are turning red again as the expected drop in BTC price has arrived without delay. The rising price, fueled by increased demand in futures, is returning to its previous position as millions of dollars in positions are closed early. The potential low volume over the upcoming weekend suggests a boring end to September.
Bitcoin Cash (BCH) briefly surpassed $240 today, pushing its monthly gain to over 25%. Bitcoin Cash emerged as the second best-performing altcoin among the top 20 cryptocurrencies this week, following Chainlink.
Once touted as faster and cheaper than Bitcoin, BCH fork emerged to challenge it but later faded away. However, EDX Markets revived it this year by offering it to institutional clients alongside a few other altcoins. With a target of $300 now, BCH Coin continues to aim for an ambitious peak, after hovering above $1,000 before 2021.
BCH Coin price has now dropped to $230 due to the decline in BTC. However, recent on-chain data highlights the largest whale activity since the beginning of August, signaling an increase in the number of whale transactions, which is typically considered a bullish signal for altcoins.
The direction of the price will be determined by two factors for now: whether whale activity will turn into a new buying wave and the selling trends. If whales do not sell and continue to accumulate, the price increase may continue.
Despite the steady rise in the price of BCH Coin over the past month, social volume suggests that a decline may begin soon. The chart below shows how BCH Weighted Sentiment has been moving towards the negative zone since mid-September. This metric measures the overall sentiment for the respective cryptocurrency, and when it enters the negative zone, continuous selling pressure is expected.
For now, the price’s direction will be determined by two things: whether whale activity will turn into a new buying wave and the selling trends. If whales do not sell and continue to accumulate, the price increase may continue.
However, due to the negativity in BTC price, we may see a decline in the price even if whales remain positive. The psychological resistance level of $300 is targeted after the rise above $250 and $280. On the downside, there are support levels at $218 and $200 below $230. The price may enter a long-term decline afterwards. In this scenario, the $180 and $165 regions will come into focus.