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Cryptocurrency News Articles
Should You Still Buy into Bitcoin Cash [BCH] after Its Mid-October Bounce?
Oct 23, 2024 at 06:00 pm
A large bullish price move in a day is often translated as accumulation by whales. BCH demonstrated such an outcome about a week ago but has since
Bitcoin Cash [BCH] showed signs of recovery from August lows with a mid-October price surge. However, BCH struggled to maintain bullish momentum after the mid-month price pump. A recent transaction spike may have offered some confidence to investors.
Bitcoin Cash has been making lower highs as it recovers from lows around $110 in August. The cryptocurrency exchanged hands at $258.6 at press time, up from lows around $110 in August. A sign of recovery from lows encountered during the August sell-pressure.
After recovering from lows, Bitcoin Cash encountered another round of sell-pressure around early October. This sell-pressure saw BCH drop from highs around $330. A recovery from these lows saw the cryptocurrency move towards the upper-$200 price levels once more.
However, sell-pressure at upper levels of the range bound price action saw BCH return to the mid-$200 price levels where it traded at press time. A large bullish price move in a day is often translated as accumulation by whales. BCH demonstrated such an outcome about a week ago but has since then struggled to sustain the bullish momentum.
Bitcoin Cash ownership data
Bitcoin Cash ownership did show signs of shifting towards a long term focus. This was evident in the changes observed in cruiser, trader, and hodler addresses. A sign of short term traders shifting to a long term outlook.
Cruisers dropped from over 653,710 addresses as of 22 September to 618,460 addresses. Traders also dropped from 107,640 addresses to 94,820 addresses during the same period. A shift from short term to long term holdings was observed.
Hodler addresses also shifted, moving from 24.34 million addresses on 24th September to 24.39 million addresses. A slight increase in hodler addresses was seen as the cryptocurrency moved through the mid-October price surge.
Bitcoin Cash balances shifted from hodlers to cruisers
As for balances, hodler balances dipped from 11.94 million BCH to 11.93 BCH. This may suggest that some took profits after the mid-week rally. On the other hand, cruisers added to their balances during the same period. Their balances were up from 6.75 million BCH to 6.8 million BCH.
Finally, trader balances dropped from 1.11 million BCH to 1.07 million BCH according to the latest data. These findings did not offer conclusive evidence to indicate that strong accumulation has been taking place.
The recent bullish activity in the middle of the month may have been an attempt at inducing activity. Speaking off, Bitcoin Cash just registered its highest transaction spike since mid-August.
The number of transactions grew from around 13,000 TXs on 20th October to over 368,000 transactions on 21st October. It was unclear whether the transaction spike and the mid-month surge are related.
However, this renewed surge in transaction activity may offer more confidence to investors.
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