What Do Traders Expect for the Bitcoin Cash Price? Will the Price Increase or Hit the Bottom?

Crypto News – This week, the price of Bitcoin Cash remains trapped below the $250 barrier. Analysis of on-chain data identifies the crucial elements undermining the upward momentum of the BCH.

What Do Traders Expect for the Bitcoin Cash Price? Will the Price Increase or Hit the Bottom?

Despite the current surge in the cryptocurrency market, Bitcoin Cash seems to be having trouble making headway. The fundamental cause of this week’s sharp slowdown in BCH price action has been identified by on-chain data trends as a decrease in network activity. IntoTheBlock reports that there has been a discernible decline in the number of active users on the Bitcoin Cash peer-to-peer network lately.

Decrease in the Ratio of Active and New Addresses

BCH Active Addresses have decreased by 79% during the past seven days, as seen in the graphic below. As a result, there have been an astonishing 85% fewer new users entering the network. Vital on-chain data points that give an overview of the economic activity taking place on a blockchain network are the Active Addresses and New Addresses metrics.

The amount of current users conducting profitable transactions is tracked by Active Addresses. The rate at which new users are drawn to the network is gauged by the New Addresses metric. A warning sign that the underlying BCH coin may see reduced market demand in the next few days is when both measurements decrease at the same time.

Total Fees Are Also Decreasing

Another pertinent measure that supports the present downward trend in BCH total fees earned daily is the drop in network activity. The fees collected from transactions on the Bitcoin Cash network have decreased by 73% during the last week, as seen in the graphic below.

This concerning pattern suggests that BCH economic activity declined far less than the September data. The entire amount spent by network users to access services hosted on a blockchain over a specific time frame is measured by the total fees indicator. One traditional bearish warning of slowing network demand is a fall in the amount of fees earned by crypto transactions.

This indicates that traders who are positive and betting on the overall crypto market rally have been the main drivers of the current BCH price gain. In the next few days, Bitcoin Cash’s bullish price action may start to wane in the absence of a major increase in network activity.