- Bitcoin Cash’s market structure has flipped from bearish to bullish in the last few months.
- Whales still haven’t begun to increase the number of whales in their population.
Bitcoin Cash [BCH] On the 23rd February, it was priced at $259. It reached a local peak of $529.2 on the 3rd March before prices dropped to $417 by press time.
This rally could be similar to the one in July 2023.
The $500 mark was a psychological and technical resistance level. BCH faced rejection just above the $500 level. It nevertheless reached price levels that had not been seen since December 2020.
To solve the riddle, you need two Fibonacci levels
Bitcoin Cash grew from $90.3 up to $329 in June 2023. This is a 264% increase.
The Fibonacci plot (pale-yellow) showed that 48 days after the high local back then, the 61.8% Retracement Level was tested.
BCH prices then settled between $210 to $260. next 133 days.
In between, there were several attempts to break out past $260. However, a sustained breakout and retest at $260 occurred only in late February. In addition, the 61.8% expansion level at $476 has been breached in the recent rally.
It was also likely that the next Bitcoin Cash is expected to fall by $337.6 in two months.
The Fibonacci extension levels can be extended by 61.8% (dotted cyan), resulting in a $720 move.
The accumulation has not begun
![BCH Santiment](https://fxruhanahmed.com/2/wp-content/uploads/2024/03/1710168245_587_Bitcoin-Cash-to-retrace-consolidate-and-rally-all-in-2024.png)
![BCH Santiment](https://fxruhanahmed.com/2/wp-content/uploads/2024/03/1710168245_587_Bitcoin-Cash-to-retrace-consolidate-and-rally-all-in-2024.png)
Source: Santiment
The MVRV has risen nearly as much as it did in June 2023. It shows holders are making a huge profit.
Since mid-December when BCH’s market structure flipped to the bullish side, the mean coinage has been trending downward.
This shows that the holders of assets have sold them even though prices are rising. Investors should wait until this metric continues to trend upwards before deciding to buy.
The total number of holders decreased from 26.55 millions on the 15th February to 25,87 on the 11th March.
The price rally was another indicator that investors were profiting.
![BCH Number of addresses supply distribution](https://fxruhanahmed.com/2/wp-content/uploads/2024/03/1710168245_497_Bitcoin-Cash-to-retrace-consolidate-and-rally-all-in-2024.png)
![BCH Number of addresses supply distribution](https://fxruhanahmed.com/2/wp-content/uploads/2024/03/1710168245_497_Bitcoin-Cash-to-retrace-consolidate-and-rally-all-in-2024.png)
Source: Santiment
The distribution of supply based on the number of address was very interesting. The number of wallets with less than 1000 BCH has been trending lower over the last month.
Since mid-January, the number of BCH addresses holding between 1k and 100k has also decreased.
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The number of addresses that had 1k-100k tokens increased two months after the rally in June. This indicated that whales were accumulating tokens during the consolidation phase.
Investors could also keep an eye on the rise of this metric in the months to come to confirm their bullish thesis.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: ambcrypto.com