• Bitcoin Cash (BCH) has risen by 21 percent in the last seven days, after recording over 150 percent gains in June.
• Whales possessing 1 million to 10 million coins have been responsible for the June rally, but their buying activity has stopped since the start of July.
• Analysts predict a bearish run if whales maintain their neutral position for a long time, as user activities on the network are declining.
Bitcoin Cash Price Skyrockets
Bitcoin Cash (BCH) started the week with a price surge of 21 percent in the last seven days. This is quite remarkable considering that it experienced a 13 percent price correction at the start of July following its over 150 percent gains in June.
Whale Activity Responsible for Price Rally
Whales possessing 1 million to 10 million coins were responsible for the June rally, as they purchased 170,000 BCH ($52.4 million) between June 21 and 30. However, their buying activity has stopped since the start of July and their total balance was reportedly around 1.51 million BCH between July 1 and 4. It is believed that purchases like BCH could benefit from SEC’s attack on cryptos like Solana and Cardano.
User Activity Declining
On June 28, 376,000 active users were recorded on Bitcoin Cash network which is said to be a recent high; however user activities across Bitcoin Cash ecosystem have constantly declined since then and daily active address had declined by 23 percent to 309,000 as of July 4th .
Analysts Expect Pullback
Market analysts expect Bitcoin Cash to trigger a bearish run if whales continue holding their neutral position for a long time due to decreasing demand for the asset which could send its price below $250 with support fixed at around $265 depending on reaction from traders.
Is Now A Good Time To Fill Your Bags?
At this point it remains unclear whether now is an ideal time to fill your bags with Bitcoin Cash or not given current market dynamics; however investors should take into consideration all factors before making any decisions related to trading cryptocurrencies