• Bitcoin Cash (BCH) has seen an impressive 21 percent surge in the last seven days.
• Whales have reportedly stopped accumulating the asset since the start of July after amassing it in June.
• Analysts predict a pullback to $210 in the near term due to declining user activities and whale wallet balances.
Bitcoin Cash Price Skyrockets
Bitcoin Cash (BCH) has seen an impressive 21 percent surge in the last seven days, trading at $295. This is quite interesting considering the fact that it started July with a 13 percent price correction, recording over 150 percent gains in June to trade above $300.
Whales Accumulating BCH
Whales possessing 1 million to 10 million coins have played a huge role in this surge by buying up 170,000 BCH ($52.4 million) between June 21 and June 30; however, their total balance was reportedly around 1.51 million BCH between July 1 and July 4 which suggests that their sentiment towards Bitcoin Cash is on the decline.
SEC Lawsuit & User Activity
Investors may be moving to Proof of Work assets such as Bitcoin Cash due to the US Securities and Exchange Commission lawsuit against Coinbase and Binance. Additionally, daily active addresses indicate changes in user activities, with 376,000 active users being recorded on June 28 as a recent high – however, this number has since declined by 23% to 309,000 as of July 4th.
Analysts predict that if whales continue their neutral position for a long time, Bitcoin Cash could trigger a bearish run and send its price below $250 – although support could potentially be found at around $265 depending on market reaction.
In conclusion, while Bitcoin Cash made impressive gains in June due to whales accumulating high amounts of coins and investors looking for security from SEC lawsuits against Coinbase and Binance – analysts now see potential for a pullback to $210 due to declining user activity and whale wallet balances reversing their accumulation trend since early July