Crypto News– BCH stages a comeback sending its holders into a state of unease as it teetered on the brink of breaching the critical support level at $180. However, a resilient group of bullish whales took a stand against the prevailing bearish conditions, setting off a notable price recovery.
An examination of on-chain data now seeks to gauge the potential extent of BCH’s price rally, contingent on the outcome of the Federal Reserve’s interest rate announcement scheduled for September 20, and its impact on risk-on assets.
BCH Stages a Comeback – Is a 300-Dollar Price Recovery on the Horizon?
During the first ten days of September, the price of Bitcoin Cash (BCH) underwent a downturn, witnessing a 19% decline from $226 to $184. Yet, despite these substantial bearish pressures, determined crypto whales maintained an optimistic outlook.
On-chain data sheds light on how whales, holding between 1,000 to 100,000 BCH coins, have played a pivotal role in propelling Bitcoin Cash to the forefront of the week’s top gainers. Between August 31 and September 18, these whales demonstrated their conviction by strategically accumulating an additional 70,000 BCH coins, thus increasing their collective holdings from 7.85 million BCH to 7.92 million BCH. It’s worth noting that while investors typically encompass high-net-worth individuals or corporate entities with substantial cryptocurrency holdings, often exceeding $100,000, whose trading activities can significantly influence the market.
At the current market price of $222 per BCH, the 70,000 coins amassed by these whales in September equate to an approximate value of $15.5 million. The chart depicting this accumulation trend suggests that they show no signs of deceleration at present.
Given the expectations of many Reuters economists for a rate freeze, it appears likely that the BCH whales will intensify their buying spree in the aftermath of the Federal Reserve’s meeting scheduled for September 20.
Retail Investors Have Yet to Participate in the Action
Despite the recent impressive price gains, it’s interesting that Bitcoin Cash seems to be flying somewhat under the radar for many retail investors. Take a look at the data below – while Bitcoin Cash has been on quite a tear since September 11, the metric known as Social Dominance has been on a decline, dropping from 0.87% on September 12 to 0.55% by September 18.
Now, what does Social Dominance mean? It measures the percentage of social media attention a cryptocurrency gets compared to the top 50 most talked-about projects. In simple terms, when a cryptocurrency is on a price rally, a decreasing Social Dominance indicates that it hasn’t yet caught the massive media hype and widespread attention of retail investors.
So, what could this suggest? Well, it might imply that Bitcoin Cash’s price journey might not be over just yet, and there might still be room for further gains before we see a market frenzy.