(CTN News) – Bitcoin Cash (BCH) has experienced a sharp 10% decline, falling to $225 on October 9. In the previous week, the bulls failed to break through the $250 resistance level.
As miners and crypto whales take opposing positions, the price of BCH is likely to remain uncertain for some time to come.
Miners’ actions have recently lowered Bitcoin Cash’s price
The price of Bitcoin Cash reached its yearly peak of $329 in June, propelling it to the top of the 2023 top gainers’ list. On-chain indicators, however, suggest that BCH miners are taking advantage of this rally to liquidate their block rewards.
According to the IntoTheBlock chart below, the miners began selling off almost immediately after the BCH price rally began on June 19.
In the period between June 19 and October 9, they have depleted their reserves of Bitcoin Cash from 8.37 million to 5.76 million. In particular, this is the first time since 2018, that the Bitcoin Cash miners’ reserves have fallen below 6 million BCH.
Within the last three months, BCH miners have withdrawn 2.61 million coins worth approximately $590 million at the current market price of $225. Moreover, $106.2 million of that amount was sold in the last week, after the price of BCH reached $250 on October 1.
Miners’ reserves continue to decline, resulting in an increased supply on the market and putting downward pressure on the price of BCH.
It is unsurprising that the price of Bitcoin Cash has fallen from $250 to $225 between October 1 and October 9, largely due to miners selling off their rewards.
In spite of this, bullish whale investors have injected fresh capital into BCH. With the approval of ETH Futures ETFs and positive Non-Farm Payrolls (NFP) reports, this influx of approximately $4.5 million coincides with positive developments in the crypto sector.
Bitcoin Cash Price Prediction: $200 is a critical support level
There is the possibility of a short-term bounce or consolidation from the current price of $218 considering the oversold conditions on the Stochastic and Commodity Channel Index (CCI) indicators.
It is likely that the asset will trade between $218 (current support) and the middle Bollinger Band around $226.16 in the short term. In the event that the oversold conditions lead to a bounce, the asset could aim for the upper Bollinger Band at around $236.46.
In spite of this, traders should exercise caution, as the overall trend has been bearish, and it is imperative to monitor the asset’s reaction to the key support level of $202. It is possible that a bearish reversal toward $180 would occur if that critical support is lost.
If, on the other hand, BCH manages to break above $250, a cluster of resistance awaits around that level. BCH holders will determine whether or not the price reverses based on whether they book profits or trigger a reversal.
A challenging period is ahead for Bitcoin Cash as miners and whales clash, which will have an impact on its price trajectory. There will likely be key battlegrounds in the coming weeks between the $200 support level and the $250 resistance level.