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Bitcoin Cash Price Tumbles 13% as 130,000 BCH Wallets Shutdown in 3 Days

By:
Ibrahim Ajibade
Published: May 29, 2024, 16:10 GMT+00:00

Key Points:

  • Bitcoin Cash price slid to a new weekly low of $462 on May 29, down 13% within the 8-day timeframe
  • Technical indicators shows BCH bull traders are now battling to avoid a reversal below $440.
  • 130,000 BCH wallets have shutdown in the last 3-day as investors switch focus to Ethereum ETFs.
Bitcoin Cash (BCH) Price

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Bitcoin Cash price slid to a new weekly low of $462 on May 29, down 13% within the 8-day timeframe, technical indicators shows BCH bull traders are now battling to avoid a reversal below $440. 

Bitcoin Cash price decline continues as Ethereum ETF hangs in the Balance

Ethereum ETFs sent bullish shockwaves across the crypto markets when they first reported an imminent approval of Ethereum ETFs on Monday May 20. But since the SEC issued an official approval verdict on May 23, the euphoria has cooled, sending the global crypto market into a consolidation phase.

Projects like Bitcoin Cash have struggled for momentum since May 21, as investors appear to be showing preference for ETH and other native tokens in the Ethereum DeFi ecosystem over the past week.

Bitcoin Cash Price Action (BCH/USD) May 21 - May 29, 2024 | TradingView
Bitcoin Cash Price Action (BCH/USD) May 21 – May 29, 2024 | TradingView

As depicted in the TradingView chart above, BCH price has declined 13% between May 21 and May 19.

As markets await inflow of funds into ETH ETFs, which could take weeks to months to go live, this bears could further exacerbate the Bitcoin Cash correction phase in the days ahead.

130,00 BCH Wallets Shutdown in 3-days

In further affirmation the bearish stance, on-chain data shows that an unusually high number of investors have exited the Bitcoin Cash network in the last few days.

Santiment’s Total Amount of Holders chart below tracks daily changes in the total number of active, funded wallet addresses on a blockchain network. A decrease in active wallets occurs when the number of holders exiting their positions exceeds the number of new entrants and vice versa.

Bitcoin Cash Price vs. BCH Total Number of Holders
Bitcoin Cash Price vs. BCH Total Number of Holders

A large number of Bitcoin Cash holders have been spotted emptying their wallets and exiting the network and the market consolidate phase intensified this week.

As seen in the chart above, there were 25.79 million active BCH wallets as of May 26. But that figure has now dropped to 25.66 million BCH wallets at press time on May 29, reflecting a rapid shutdown of 130,000 BCH in the last 3 days.

This suggests the there’s an overwhelming negative sentiment within BCH ecosystem. And if the trend persists, Bitcoin Cash price could experience further downside in the days ahead.

Bitcoin Cash (BCH) Price Forecast: $450 Support at Risk

Bitcoin Cash price has lost considerable traction, with 130,000 wallets shutdown in the last 3 days. This puts BCH price at risk for losing the $450 support level in the near-term.

With BCH currently trading at $466, the Bollinger band technical indicators also shows that bears how now forced a downswing below the critical support level at the 20-day SMA price of $470. 

Bitcoin Cash (BCH) Price Forecast | TradingView
Bitcoin Cash (BCH) Price Forecast | TradingView

The chart above shows that the next major support cluster for Bitcoin Cash price is now at $442 level. If holders that bought BCH around that price level opt to defend their positions, an early rebound above $450, could be on the cards.

But if that key support level cannot hold, the bearish correction phase could send BCH price spiralling toward $414.

 

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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