Bitcoin Cash (BCH) experienced significant bearish pressure over the weekend of 9-10 September 2023, losing its hold on the $190 support level. Despite attempts by buyers to prevent a further drop below $180, BCH failed to reclaim the $190 support at press time, potentially flipping the level to resistance.
The situation could encourage sellers to lower BCH prices further, particularly if Bitcoin (BTC) fails to reclaim $26,000 in the short term. The Relative Strength Index (RSI) retreated in the lower range, reinforcing elevated selling pressure at press time. Similarly, the Chaikin Money Flow (CMF) labored below the zero threshold, indicating weak and stagnated capital inflows into BCH market.
On-chain data reveals that whale investors have made fresh inflows of approximately $6 million in September. However, this may not be sufficient to counteract the bearish trend. The Exchange On-chain Market Depth chart shows that bearish traders dominate the balance of existing Bitcoin Cash orders with 395,000 active BCH sell orders, towering above the bull's 306,000 BCH buy orders.
Cumulative Volume Delta (CVD) Spot edged lower from 8 September according to Coinalyze, marking sellers’ increasing market leverage. Open Interest rates fluctuated between $180 million and $200 million in September, demonstrating wavering demand for BCH and overall neutral sentiment.
Despite the bearish trend, a group of crypto whales holding between 1,000 to 1 million coins has been supporting BCH prices over the past week. Their cumulative balances increased from 10.26 million BCH coins at the end of August to 10.29 million BCH on Monday. This cohort currently controls 53% of the total BCH circulating supply of 19.5 million coins.
While these whale investors could absorb the excess supply on exchanges and shore up confidence among other investors, it remains to be seen whether they can sustain their ongoing buying trend. If the bearish traders can push past the $180 support level, BCH price could enter a prolonged downswing toward $160. However, if the bullish whales successfully flip the tide, BCH price could reclaim the $220 territory.
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