Increase in Bitcoin Cash (BCH) losses

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Bitcoin Cash (BCH) price continues to hit new lows in July since dropping from its recent 2023 high of $320 on June 30. Amid mounting losses, BCH investors are now looking to make a last ditch effort to avoid a prolonged bearish reversal.

Bitcoin Cash (BCH) hit a new high in 2023 with a price of $320 on June 30, following renewed interest from institutional investors. With the recent whale accumulation frenzy cooling, long-term BCH investors are struggling to absorb the mounting selling pressure.

Losses Rise for Bitcoin Cash Holders

Bitcoin Cash price has been in a downtrend for most of July so far. Even last week, the rally in the altcoin market sparked by XRP’s victory against the SEC appears to have further exacerbated the losses.

The current Market Value to Realized Value (MVRV) ratio clearly shows the increasing level of losses among BCH holders. After weeks of a downtrend, the Bitcoin Cash MVRV ratio fell to negative values ​​this week.

The chart below shows that the BCH MVRV (30d) ratio went from 10% profit to -8% loss between July 12 and July 18.

Growing Bitcoin Cash (BCH) Losses | MVRV ratio, July 2023. Source: Santiment

The MVRV ratio analyzes the net financial position of holders by comparing current market prices to the average price at which coins were last traded.

Therefore, the chart above shows that most holders who acquired BCH in the last 30 days are now 8% underwater.

As they desperately seek to avoid hitting the 10% loss mark, Bitcoin Cash investors might make a last ditch effort to offer bullish support.

Long-term investors cool selling pressure

Furthermore, the on-chain data shows that long-term BCH holders also made last-ditch efforts to avoid an extended bearish reversal. According to data compiled by Santiment, long-term holders began to cool their selling pressure last week when BCH fell below $275.

As shown in the chart below, BCH Age Consumed between July 13 and July 17 fell by 73% from 21.57 million to 5.72 million.

Growing Bitcoin Cash (BCH) Losses | Age consumed, July 2023. Source: Santiment

The measure of consumed age is derived by multiplying coins in circulation by the number of days spent in current wallet addresses. This gauges the network-wide selling pressure by following the current holders of their tokens for a long time.

A drop in Consumed Age is seen as a bullish signal, indicating that holders are holding onto their tokens longer on average.

In summary, rising unrealized losses and falling age-consumed values ​​mean that many BCH holders are unwilling to sell at current prices.

In a bid to resist higher prices, they could trigger a last-ditch push to kick-start BCH price higher.

BCH Price Prediction: Potential Rebound to $270

Given the factors highlighted above, BCH will likely bounce back towards $270 before entering another reversal. However, the bulls will face significant resistance at the $257 territory.

IntoTheBlocks GIOM data shows that 455,000 investors bought 2.48 million BCH coins at an average price of $257. Should they choose to exit their positions, Bitcoin Cash could enter another round of losses.

However, if the bulls can push past this resistance, BCH might hit $280 once it gains.

Bitcoin Cash (BCH) Price Prediction | GIOM data, July 2023. Source: IntoTheBlock

Still, the bears might stay in control if they can reverse the $230 support level. However, the 353,000 investors who bought 1.95 million BCH at the maximum price of $235 will provide considerable support.

But if BCH loses this support level, many holders could panic and trigger a bigger drop towards $200.

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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