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- Bitcoin Cash price fell to a 40-day low of $390 as the crypto market’s slide extended on Friday.
- On-chain data trends show that traders have emptied 40,000 active BCH wallets in the last three days.
- From a technical point of view, BCH bulls now face a big challenge to break the $450 resistance level.
Bitcoin Cash price fell to a 40-day low of $390 as the crypto market’s slide extended on Friday. On-chain data trends show that a large number of existing BCH holders are emptying their wallets amid the market downturn.
Bitcoin Cash price drops 35% as cryptocurrency sell-off continues
Following the dovish stance that followed the Federal Reserve’s (Fed) rate decision on Wednesday, the global crypto market is in a steep downtrend.
While the price of Bitcoin fell as low as $94,200 on Friday, the tailwinds extended to popular Proof-of-Work altcoins such as Bitcoin Cash (BCH) and Litecoin (LTC).
Bitcoin Cash Price Action | BCHUSDT (Binance)
The chart above shows how the price of BCH has fallen 35% since the initial market swing on December 9th.
During that period, the price of Bitcoin Cash fell from $623 to a 40-day low of $390 on Friday.
40,000 BCH investors emptied their wallets amid the cryptocurrency’s fall
Bitcoin Cash (BCH) has seen a steep 35% price drop in the last 18 days, falling faster than major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
On-chain data revealed that a significant number of BCH holders liquidated their positions amid the ongoing market decline, sparking fears of further downside risks.
Recent data from IntoTheBlock highlights a significant decrease in the number of actively funded wallets on the Bitcoin Cash blockchain.
This metric offers valuable insight into investor behavior during volatile market phases.
As of December 16, 2024, there were 24.86 million funded BCH wallets online.
Total Bitcoin Cash Owners | Source; IntoTheBlock
However, as the Fed meeting unfolded earlier this week, a sharp wave of selling activity emerged.
Approximately 40,000 wallets have been emptied over the past three days, bringing the total number of funded wallets down to 24.82 million by December 19, 2024.
This data indicates a significant exodus of BCH holders, with 40,000 wallets liquidating their entire holdings during the market downturn.
Such widespread capitulation underscores heightened anxiety among investors, many of whom appear to be pulling back amid the current uncertainty.
This trend signals potential downside risks for BCH in the near future. The first concern is the obvious loss of investor confidence.
The rapid decline in funded wallets reflects bearish sentiment, with many investors seemingly losing faith in BCH as a reliable store of value.
This could discourage new participation and further boost sales momentum.
In addition, the mass liquidation increased selling pressure on BCH, a factor that could deepen the token’s volatility.
With fewer active participants and increased selling activity, Bitcoin cash could face a steeper price decline if the market decline continues.
BCH Price Prediction: $450 resistance looms
Bitcoin Cash (BCH) is facing significant resistance at $450 after a sharp 37% decline over the past 11 days.
Bollinger Bands on the daily chart indicate narrowing volatility with prices testing the lower band near $447.
This suggests that BCH may struggle to break out of its downward trajectory, especially with the current trend showing limited momentum towards a recovery.
Bitcoin Cash (BCH) Price Forecast.
The Bull-Bear Power (BBP) indicator highlights bear dominance, currently at -181, highlighting strong selling pressure.
The $450 level is aligned with the midpoint of the Bollinger Bands, acting as a critical resistance zone that BCH needs to break to signal any bullish reversal.
Failure to clear this hurdle could intensify bearish sentiment, pushing prices further down.
On the other hand, two key support levels provide potential dampers.
The first is at $430, where recent wicks have found temporary stability.
The second is at $390, coinciding with the lower Bollinger band and marking a psychological threshold.
Breaking these supports could trigger further declines, but holding them could signal consolidation amid the ongoing selloff.
