Bitcoin Cash Struggles with Demand After Mid-October Surge: What’s Next for BCH?

• Bitcoin Cash (BCH) is predicted to be gearing up for a whopping 900% surge to hit the $3,745 level.
• Data suggests that most investors behind the mid-October rally have not yet taken profit as they anticipate a massive price move.

Bitcoin Cash (BCH) made a surprise rebound to hit a monthly high of $383 in mid-October from the monthly low of $309 recorded some weeks ago. According to our research, this incredible move made it one of the top gainers in the week ending October 22. Unfortunately, this rally was short-lived as the asset took a nosedive in a daily fall of 2.4%. At press time, BCH was trading at $351.

Bitcoin Cash (BCH) On-Chain Hints Positive Outlook

According to our data, 17% of Bitcoin Cash’s 14.35 million holding addresses are controlled by whales. The data also suggests that investors are bullish on the project as 96% of these addresses have been holding BCH for more than a year compared to the 2.45% addresses holding the asset between one month and 12 months.

A Lookonchain data also hints that HODLer addresses only increased marginally from 24.34 million on September 24 to a current figure of 24.39 million addresses. For cruisers, there was a significant reduction from 653,710 addresses on September 22 to 618,460. Meanwhile, traders’ addresses also declined to 94,820 from the 107,640 addresses recorded on September 22. These indicate a significant shift from short-term to long-term aspirations.

Looking into other metrics, we uncovered that selling pressure remains weak at the current price as only a few investors behind the mid-month purchase took profit. According to data, the holder balance has marginally reduced from 11.94 million BCH to 11.93 BCH since the mid-week rally. Within the same period, Cruisers’ balance went up from 6.75 million BCH to 6.8 million BCH. However, the trader’s balance dropped from 1.11 million BCH to 1.07 million BCH. On top of that, the number of BCH transactions grew from 13,000 on October 20 to more than 368,000 on October 21.

Analysts Subject the Asset to Technical Analysis

Recently, an analyst identified as Javon Marks pointed out that BCH has confirmed a bull pattern which suggests that it could return above its 2024 high. According to him, this could be the beginning of a 900% breakout that could send the price to $3,745.

In August, Marks shared another post that confirmed his earlier prediction. In the post, he iterated that the asset continues to hold its key bullish pattern.

BCH (Bitcoin Cash) prices confirmed a Hidden Bullish Divergence and have since displayed MAJOR STRENGTH, but there can be much greater coming with a target of $3,745.89 that’s in play! With this target, another +683% climb could take place to reach it and this divergence looks to be helping prices into the fulfillment of this process.

Meanwhile, another analyst identified as World Of Charts has predicted that BCH could target $800 in its next move. According to him, the asset would first have to breach multiple key resistance levels to attain this height.

$Bch Seems Like Preparing For Recovery In Coming Weeks Currently Testing Multiple Resistances Bch Need Clear To Clear These Hurdles Before Making New Yearly High. Incase Of Successful Breakout Expecting Move Towards 800$#Crypto #Bch pic.twitter.com/vrIFqSddKe— World Of Charts (@WorldOfCharts1) July 28, 2024