Cryptocurrencies seem to be on the brink of a new historical drop. BCH Coin has also taken its share from these sales. It had caught the attention of whales with the news of the EDX Markets. However, the current situation shows that the market appetite has significantly eroded despite all the good news. So, what’s next? At what price can BCH Coin be purchased?
The Bitcoin Cash (BCH) price dropped below $190 on Sunday, once again threatening the $180 support. On-chain data interestingly suggests that whales continued to enter the market in September. The entry of a new whale worth $6 million became an interesting data point amid the ongoing sell-off. Bitcoin Cash (BCH) managed to avoid falling below the critical support zone of $180, saving itself from another fear over the weekend.
On-chain data obtained from the order books of 21 well-known exchanges shows that bear traders dominate the current balance of Bitcoin Cash orders. As shown below, bears currently have the upper hand with 395,000 active BCH sell orders, while bulls’ 306,000 BCH buy orders remain weak.
The excessive supply on exchanges indicates that the downward pressure continues despite the recent price recovery. Therefore, Bitcoin Cash may experience another price drop in the coming weeks without a significant increase in demand. Considering that the overall market sentiment is expected to remain negative for at least the next 9 days (FTX liquidations, September 20 Fed meeting, etc.), lower prices are possible.
The whale group holding 1,000 to 1 million coins had 10.26 million BCH at the end of August. This number reached 10.29 million BCH on September 11th. This whale group controls 53% of the total supply with its cumulative balance. Although many metrics are negative, the group’s eagerness to sell and its long-term goals can weaken the selling pressure. It is exciting that BCH Coin, one of the four cryptocurrencies supported by EDX Markets, will be one of the few alternatives that institutions can buy in the future.
In summary, if the ongoing buying trend continues among whales, the excessive supply can be absorbed. Bulls supported by the buying trend of whales can create a strong support wall in the $180 range. However, closing below this zone could lead to a drop as low as $160. In the opposite scenario, the targets for a possible recovery are $195 and $220.