Bitcoin price turned upward again and approached $36,000 after yesterday’s Fed statements. Altcoins are also increasing their gains during this process. What excites investors is the increased risk appetite in the markets despite Powell not adopting a dovish stance. Moreover, November is promising in terms of historical performance.
Bitcoin fork, EDX Markets, which has shown a very poor performance between 2022 and mid-2023, reached new highs due to the excitement. One of the few altcoins on the institutional crypto investment platform launched by trillion-dollar asset management giants was BCH Coin. Although the price exceeded $300 before the recent BTC rally, it failed to show the expected performance as the overall market sentiment recovered.
The weakening in the number of active users on the on-chain front is noteworthy. According to IntoTheBlock data, active addresses decreased by 79% in the last 7 days. During the same period, there was an 85% decrease in the number of new addresses joining the Bitcoin Cash network.
The state of active addresses and new users is two critical metrics for measuring economic activity in the network. When both metrics decrease simultaneously, it is assumed that demand for the respective cryptocurrency weakens and further decline can be expected.
Positive market sentiment allows BCH price to survive despite the negative image in the network. Bitcoin price is near $35,500 at the time of writing this article, which is $1500 higher than yesterday’s low.
The price of Bitcoin fork, on the other hand, is hovering near the critical resistance area of $250. This area appears to be critical in terms of investor cost and suitable for potential sales. The average cost of over 2 million BCH Coins is in this area.
If Bitcoin (BTC) price can close above $35,500, in this scenario, the $250 resistance area will be surpassed with general market support, and despite negative data, investors can target the critical resistance area of $280. It does not seem impossible considering that the cumulative value of cryptocurrencies has held the support of $1.3 trillion and the volume has exceeded $60 billion.
It may be useful for investors expecting a decline to monitor closes below $234. In this scenario, we may see a decline to $218 and $190, followed by $163. If $163 is also lost, it will be considered as the end of the 2023 rally for BCH Coin.