Bitcoin Cash holders with at least $ 3 million have declined since August 10, following a huge price spike to over $311. Several Bitcoin Cash whales have abandoned the network following a nearly 40 percent price surge, probably trading or selling their BCH worth millions of dollars.
Massive Bitcoin Cash holders clearing the bag
A recent tweet by crypto enthusiast Ali Martinez, claims that recent data shared by blockchain analysis firm Santiment reveals the number of Bitcoin Cash holders between 10,000-100,000 Bitcoin Cash (BCH), have slumped since August 10. The expensive exodus of BCH network followed a 37.8 percent rise in the price of the crypto, from $224.46 on July 17 to a three-month high of $311.34 on July 31.
Data from @santimentfeed shows that the selling pressure behind #BitcoinCash is surging dramatically. The firm recorded a major drop in the number of addresses holding 10,000 to 100,000 $BCH.
Since Aug 1, roughly 10 whales have left the network, representing a 5.6% decline. pic.twitter.com/uriR5j8K8q
— Ali (@ali_charts) August 7, 2020
Notably, Bitcoin Cash maintains its position as the fifth-largest cryptocurrency by market cap with $5.6 million, with LINK chasing at $4.6 billion. At press time, Bitcoin Cash is trading at $305.95. According to IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model, BCH poses above a significant supply barrier regardless of the increased selling pressure.
Will price support rescue BCH from slumping?
Based on this on-chain metric, approximately 150,000 addresses had earlier purchased more than bought more than 161,000 BCH between $283 and $290. In case of a correction, this support zone might have the capacity to hold prices from dropping further. Bitcoin Cash holders within this variety would possibly try remaining profitable. Furthermore, they might purchase even more BCH to avoid seeing negatives in their investment.
However, if the BCH whales continue selling their holdings, BCH’s price might fall below this support zone. If such a situation occurs, IOMAP suggests that the next significant crucial barrier rests between $256 and $266. At this point, roughly 119,000 addresses are holding about 420,000 BCH.
Moving forward, although there are several reasons to worried about the future of BCH, the entire crypto market sentiment worsens the situation. Cryptocurrency investors seem to be increasingly high spirited about what the future holds for the entire industry. Historically, this has proven to be an indication that prices of crypto are undergoing a boom-bust.