At the eve of the Bitcoin Cash Halving event on April 2, BCH long-term holders held a total of 11.54 million BCH in their cumulative balances. But rather than sell amid to the post-halving price dip, the long-term holders have remained in accumulation mode.
At the time of writing on April 27, BCH long-term holders balances now stands 11.7 million, marking an increase of 160,000 BCH since the halving.
Effectively, BCH long-term holders have show remarkable resilience, ignoring the fears of the ongoing post-halving sell-off, and flaring geo-political tensions. Valued at the current prices of $478 per coin, the long-term holders’ newly-acquired 160,000 BCH are worth approximately $76.4 million.
Typically, such a prolonged increase in long-held coins during periods of price decline could have a positive impact on the underlying assets’ price action.
Firstly, it signals that despite the recent price struggles majority of Bitcoin Cash existing holders remain optimistic of the asset’s near-term price prospects, which could buoy the confidence of prospective new entrants.
But, more importantly, coins in custody of long-term holders are temporarily taken out of the short-term market supply.
Hence, the $76 million in drop-off in BCH spot market supply since the halving could slow down the selling pressure, and help propel prices towards the $600 mark during the next recovery phase.
BCH Price Forecast: $600 Target in Focus
In the near-term, Bitcoin Cash price recovery phase will likely to advance towards the $600 area, especially if coins held by long-term holder add to their $73.6 million post-halving acquisition.
Coinglass’ Liquidation Map data, which shows the value of leveraged futures contracts active at key price levels also affirms this bullish Bitcoin Cash price forecast.
As depicted below, the number of BCH LONG leverage positions has now exceeded the SHORTs by a considerable margin, signaling overwhelming expectations of an imminent bullish price reversal.
Be the first to comment