Bitcoin Cash Price Eyes 22% Surge if it Overcomes CEX Inflows, Whale Selling

Key Insights:

• Bitcoin Cash price continues surging, and technicals point to a 22% gain.
• This rally will likely continue if it overcomes the risk of CEX inflows.
• It will need to overcome the risk of the ongoing wale sales.

Bitcoin Cash price continued its strong rally this week even as BTC and most altcoins remained in a consolidation. BCH jumped to a high of $525 today, July 1, its highest point since December 14, and 110% above its lowest level this year.

Technicals suggest that BCH price has the momentum to keep rising to last November high’s of $640. However, for this to happen, it will need to overcome key fundamental challenges like whale selling and rising exchange inflows.

Bitcoin Cash Price Targets 22% Surge

The daily timeframe shows that Bitcoin Cash price has jumped from April low of $248 to $525 today. It formed a golden cross pattern on May 22 as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. A golden cross is one of the most bullish patterns in technical analysis.

Bitcoin Cash price has moved above the 61.8% Fibonacci Retracement level at $490, confirming the bullish momentum. Further, the Average Directional Index (ADX) has started to point upwards, a sign that the trend is strengthening. Other oscillators like the Relative Strength Index and the MACD have also pointed upwards.

Therefore, the BCH price will likely continue rising as bulls target last November high of $640, up by 22% above the current level. A move below the support at $450 will invalidate the bullish view.

BCH Needs to Overcome Rising CEX Inflows and Whale Selling

Bitcoin Cash will need to overcome two crucial risks to continue the bull run. First, CoinGlass data shows that investors are increasingly moving tokens to exchanges, a sign of profit-taking.

The net exchange inflow stood at over $4.3 million as of July 1, up from $1.92 million the previous day. It has experienced exchange inflows for nine consecutive days.

Further, BCH price will need to overcome the ongoing whale selling, a sign that they expect it to pull back soon. Santiment data shows that holders with between 1,000 and 10,000 coins hold about 3.13 million BCH coins, down from 3.2 million on May 7.

Additionally, those with between 10,000 and 100,000 coins hold 4.21 million coins, down from 4.68 million earlier this year. Whale distribution is often a sign that these investors expect the price to continue falling over time.

Another data shows that Bitcoin Cash’s 365-day Mean Dollar Invested Age (MDIA) has crashed to its lowest level since April 3. It has moved to 1220, down from the year-to-date high of 1,343.

This metric measures the average time that dollars invested in a crypto has been held at the current address. A decline of the MDIA indicator is a sign that the price will continue falling over time.

Bitcoin Cash price continues its strong surge this week, likely because of its momentum. Technicals suggest that this rally has more room to go, potentially to last year’s high. This surge, however, faces the risk of whale sales and exchange inflows.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.