Many people have been wondering about the on-chain Bitcoin Cash price action. In this blog post, we will try to explain why on-chain Bitcoin Cash (BCH) is experiencing such a dramatic price swing.
The dash treasury offers you advice on how to double your dash holdings, and this is not a bad idea. The reason is that the expected price increase of dash in the coming weeks is around $100 per dash. The price is currently around $400, so you can see the potential for a nice return if you just hold dash and don’t try to trade it.
We have seen bitcoin show support and sideways momentum in recent weeks, but now the intra-chain pattern is showing strong divergence. We understand this by monitoring whale activity, and we have seen no change in market trends for over a month. But after the recent sell-off by mining companies, we are seeing two significant changes that indicate we have reached the bottom.While the price is moving sideways in a downward direction, the coins are being picked up on the exchanges at a very bullish pace.
PS. Recent withdrawal/deposit ratios are at local highs, indicating an exit from the bottom, scooping whales pic.twitter.com/kakrZfwI6f
– Willie Wu (@woonomic) 8. July 2021
The first thing that supports Willie Wu’s claim is the number of entities on the blockchain that own more than 1,000 BTC. The number of whales has been decreasing for quite some time, but the total number of BTCs continues to increase.
Speaking of entities, bitcoin has just reached a new high in terms of new users rather than addresses, indicating a significant growth of the network in a short period of time. The network is again adding 34,000 new users per day. The price of bitcoin is certainly testing previous lows, but the increase in bitcoin adoption around the world is something we should all appreciate.
The second change on the channel is the combined gross balance of BTC. Last week we saw the largest day of realized losses in bitcoin history, totaling $4,456,78,884, and everyone blamed retail. Supply chain indicators show a very different picture. We are seeing retailers continue to be more aggressive than usual as their balance sheets are booming.
Whales has sold 27,000 BTC so far, but its recent activity shows that it is collecting more coins than usual. The difference between the amounts of withdrawals and deposits is used to support this buying behavior.
Another point we have observed is the liquidity ratio of bitcoin. The number of holders likely to sell is much lower than the number who decide to stay put. Below is a quality overview of supply shock, courtesy of Willie Wu :
Until last week, the on-chain showed some semblance of a price recovery, but now we firmly believe that bitcoin has hit bottom. Willie Wu also says that if someone runs out of money, they will be hit either way. He also believes that the fundamentals still hold all the cards and have the potential to drive up the price of bitcoin.
Kartikeya Gutta, born and raised in India, is a cryptocurrency journalist and freelance writer for the website itsBlockchain. It covers various aspects of the industry through in-depth analysis and research. His passion for blockchain and the crypto-ecosystem is largely because he believes it can truly change the world and help millions of people.
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