Bitcoin Cash (BCH) has recently shrugged off bearish pressures that followed its halving event, rebounding impressively from its April lows. In April, the BCH saw a steep decline, plummeting 44% from $714 to $399. However, May brought a resurgence, with BCH climbing 29% to reach $515.
The past few days have seen notable volatility in BCH prices. Following an 11% drop over 72 hours, Bitcoin Cash bounced back 5%, reclaiming the $490 mark by Friday. This volatility coincided with the SEC’s approval of the Ethereum ETF on May 23, which triggered a typical “sell-the-news” reaction among swing traders and retail investors.
“Sell-the-news” is a common contrarian trading strategy where investors sell off holdings amid bullish news to lock in profits before potential declines. This strategy appeared in the BCH market, leading to a brief dip to $472. As of press time, BCH is trading at $493.91, marking a 0.70% increase in the last 24 hours.
The bullish outlook is further backed by technical indicators. The Parabolic Stop and Reverse (SAR) indicator points to a solid support level at $454, well below the current price, indicating a strong uptrend. However, BCH faces short-term resistance at $530. A breakthrough at this level could attract further buying interest, propelling the price toward $600.
Interestingly, on-chain data suggests that while retail investors engaged in “sell-the-news” activities, Bitcoin Cash whale investors remained bullish. According to analytics platform Santiment, whale wallets holding at least 1,000 BCH, accumulated significantly after the Ethereum ETF news. From May 20, these whales acquired 10,000 BCH, increasing their holdings to 11.93 million BCH, valued at approximately $5.2 million at the current price of $493 per coin.
Whale buying typically signals strong future confidence in an asset, reducing market supply and driving up prices. This dynamic partly explains BCH’s swift 5% rebound on May 24. If whale accumulation continues, BCH could target the $600 mark soon.
As Bitcoin Cash recovers from recent volatility, whale investors’ bullish stance and robust technical indicators suggest a promising upward trajectory. BCH might achieve new highs if the current buying trend persists, marking a significant milestone in its post-halving recovery.
