Bitcoin Cash (BCH) Price Crash: $100 Resistance in Focus

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Bitcoin Cash (BCH) price did not take off as investors expected after the recent network upgrade. The on-chain data reveals the critical factors that invalidated the bullish forecast for BCH price. But how long could the downtrend last?

On May 16, Bitcoin Cash (BCH) made headlines after its recent successful upgrade to the Cash Tokens network. The upgrade will bring NFTs and smart contracts to the Bitcoin Cash ecosystem.

But instead of a Bitcoin Cash price pump, as expected by many stakeholders, BCH entered a downtrend. As miners sell off and long-term holders take profits, investors are now wondering how long the bearish outlook could last.

Bitcoin Cash miners unload their reserves

Bitcoin network miners appear to be selling their rewards in bulk, indicating their bearish sentiments. IntoTheBlocks BCH Miner Reserves data assesses the number of coins held in the wallet addresses of recognized miners and mining pools.

The chart below shows how BCH miners offloaded over 550,000 coins between April 29 and May 23.

Bitcoin Cash (BCH) Price Prediction, May 2023 – Miners Reserve – Source: IntoTheBlock

At the current market value of $113, coins sold in the last month are worth over $62.15 million. Persistent selling appears to be a major driver of Bitcoin Cash’s recent price retracement.

BCH miners hold around 2.8% of the total circulating supply of Bitcoin Cash. Therefore, this selling pressure among miners could cause other strategic investors to turn bearish themselves over the next few days.

Long-term holders sold this week

This week, long-term investors in the BCH network increased their selling activity. This further confirms the general bearish sentiment surrounding the Bitcoin Cash ecosystem at the moment.

The Santiment chart below shows that BCH Age Consumed has been rising steadily since May 20.

Simply put, Age Consumed evaluates the number of recently moved coins multiplied by the number of days spent in their previous wallet addresses.

Between May 20 and May 23, it fell from 12,929 to 4.8 million.

Bitcoin Cash (BCH) Price Prediction, May 2023 – Consumed Age. Source: Santiment

When Consumed Age increases, as shown above, it indicates that long-term holders are increasingly selling their tokens.

Considering that long-term investors hold around 59% of the total circulating BCH supply, a prolonged selling spree among them could see the market saturate.

In summary, miners and long-term investors are essential to the viability of any blockchain ecosystem. Prolonged selling action among them could indicate more imminent BCH price declines.

BCH Price Prediction: Will it Fall to $100?

IntoTheBlocks In/Out of the Money data shows that the $115 resistance might prove too strong for the bulls. And with the current market dynamics outlined above, a drop towards $100 is the most likely BCH price prediction.

However, the bears may face stiff competition from 284,000 bullish investors who had bought 383,000 BCH at an average price of $110.

If the bears can break through this critical $110 support zone, the price of Bitcoin Cash will likely drop to $100.

Bitcoin Cash (BCH) Price Prediction May 2023 – IOMAP Data. Source: IntoTheBlock

On the other hand, the bulls could invalidate the bearish Bitcoin Cash price prediction if BCH breaches the critical resistance at $115.

But potential selling pressure from the 463,800 investors who bought 2.15 million BCH at an average price of $116 could trigger a pullback.

If the price manages to clear the $115 resistance, BCH might proceed to reclaim the $120 milestone.

Disclaimer

In accordance with Project Trust guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reports, but market conditions are subject to change without notice. Always do your own research and consult a professional before making financial decisions.

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