Will Bitcoin Cash (BCH) Miners Price Fall to $200?

Bitcoin Cash (BCH) price briefly retook $250 on Tuesday before bears forced an 8% rebound to the $230 region. On-chain data examines how the recent trading activity of BCH miners has affected the price.

Bitcoin Cash whales capitalized on the bullishness surrounding the altcoin markets to push BCH up the charts in late September. On-chain analysis highlights what BCH miners do behind the scenes.

Bitcoin cash issuers sold 250,000 coins this week

The price of Bitcoin Cash topped the charts in late September, hitting a 30-day high of $250 on Oct. 2 with massive whale demand. But behind the scenes BCH Miners made big money on the bull rally to make millions in profits.

According to on-chain data, miners' cumulative reserves were 6.5 million BCH as of September 29. But this figure dropped to 6.25 million BCH as of October 5.

This indicates that the miners have mined 250,000 BCH coins this week, taking advantage of the Bitcoin Cash price rally.

Miners Metric tracks the deposit accounts in wallets controlled by known large BCH miners and mining pools.

At the current market price of $230, the sale of 250,000 BCH means that miners have spent about $57.5 million.

This seems to have contributed significantly to the 8% BCH price drop this week.

Notably, after nearly unloading 2.7 million BCH in the last three months, miners still control 6.25 million coins (about 3% of the total 19.52 million BCH in circulation). Therefore, further selling action could have a significant impact on the price of Bitcoin Cash.

Crypto-wells are waiting for a possible bullish change.

After a double-digit gain in September, this week's 8% price drop has not dampened the positive sentiment of BCH Well investors. On-chain data from Santiment shows that whales worth between 100,000 and 1 million BCH have been in buying mode since September 21st.

The chart below shows how whales have grown from 2.41 million BCH on September 21st to 2.56 million BCH in October. But despite the BCH price dropping from $250 to $230 in 2 days, whales maintained their balance at 2.56 million.

With Bitcoin Cash currently trading at $230, the balances held by the aforementioned whales are $600 million, roughly 14% of Bitcoin Cash's total market cap.

This means that you will have significant influence in the BCH network. Apparently, between June 19 and July 6, 2023, the price of BCH gained more than 150% when they bought 420,000 coins.

However, as the bull market matures, it remains to be seen whether they will HODL, double down or shift their portfolios to small-cap altcoins.

BCH Price Prediction: Bearish Miners May Force $200 Retest

The on-chain indicators analyzed above establish a tight correlation between the price of BCH and the buying pressure of whales. Therefore, unless the bears continue the accumulation wave, they will force it down to $200.

The Exchange Order Books chart, which shows the price distribution of current active BCH orders, also confirms this positive view. It ensures that people who want to sell BCH exceed the current market demand.

As shown below, strategic crypto traders place orders to buy 40,041 BCH to reach $220 if the price declines by 5%. If you enable those commands, you can significantly avoid additional downloads.

But if miners continue to sell, that support buying wall could cave in and create a big drop to $200.

Conversely, Bitcoin Cash bulls could overturn that bearish forecast if bullish whales return to action. But as shown above, crypto traders opened orders to sell 48,890 BCH when the price rose 5% to $242.

This resistance may lead to a pullback as bears dominate the BCH spot market orders.

However, if that Bitcoin Cash resistance level caves in, the bulls could rise to $300 for the first time since June.