• Bitcoin Cash (BCH) has seen a 21 percent surge in the last week and is currently trading at $295.
• Whales, those with 1 million to 10 million coins, have been aggressively buying BCH from June 21 to June 30, but their buying activity has slowed since July 1.
• Analysts predict that if whale purchasing does not increase, there could be a bearish run and the price of BCH could drop below $250.
Bitcoin Cash Price Skyrockets
Bitcoin Cash (BCH) has seen a substantial price surge in the past seven days of 21 percent, leaving it trading at $295. This follows its 13 percent price correction at the start of July after recording over 150 percent gains throughout June.
Whales, or large investors who possess 1 million to 10 million coins, have reportedly been amassing Bitcoin Cash aggressively since June 21 up until June 30 when they stopped buying the asset. This accumulation by whales is thought to be responsible for driving the price up due to their influence and power in market movements.
SEC Lawsuit Impact
The surge in Bitcoin Cash’s value during June is also believed to be linked to the US Securities and Exchange Commission’s lawsuit against Coinbase and Binance which caused investors to move into Proof of Work assets like BCH as an alternative option. Analysis of user activity on the network revealed 376,000 active users on June 28 which marked a recent high.
Unfortunately for Bitcoin Cash holders, user activities across its ecosystem have been consistently declining since then as daily active addresses decreased by 23 percent on July 4th down to 309,000 unique wallet addresses facilitating transactions.
Analysts predict that if whales continue holding their neutral position without increasing purchases of BCH further then it could trigger a bearish run and drive prices below $250. The current support level is estimated at around $265 depending on reaction from markets going forward.