Bitcoin Cash price presents a bullish breakout after weeks of whale accumulation

Bitcoin Cash price might not have made a splash in 2023 but the altcoin is exhibiting a rather bullish outcome beginning 2024. The Bitcoin namesake has been in recovery and is currently fighting crucial resistance that has been acting as a barrier to its rally since July this year.

Bitcoin alts may benefit from ETF approval

Bitcoin is expected to begin its bull run in January next year after receiving approval from the Securities and Exchange Commission (SEC) for the 13 applications of spot BTC ETFs. While this event will have a bullish impact on the entire crypto market, Bitcoin namesakes and hard forks might benefit a tiny bit more, owing to their native association with BTC.

Bitcoin Cash falls under this category as one of the early hard forks, which will likely rise by the end of the next month. The whale addresses have recognized the potential of the same and have been heavily accumulating for weeks now.

Since October end, addresses holding between 1,000 and 10,000 BCH have added over 90,000 BCH worth over $20 million in the span of a month to bring their total holding to 3.39 million BCH. 

Bitcoin Cash whale holdings

This slow but steady accumulation will pay off in the form of a boost when BCH attempts to breach the critical resistance of $253.

Bitcoin Cash price eyes a breakout

Bitcoin Cash price trading at $231, failed to break past the resistance level of $253 earlier last week, noting an 8% decline to current trading price of $231. The altcoin, however, on the macro chart, is still looking bullish.

On the weekly timeframe, the price action, along with the Relative Strength Index (RSI), is forming a hidden continuation of a bullish divergence. This is formed when the price notes a higher high and the RSI observes a double bottom.

This suggests that BCH still has enough juice not only to rise further but also to recover the losses it noted in the July - August 2023 crash. However, in order to achieve this, the altcoin would need to breach and flip the five-month-long resistance line of $253. This would act as a catalyst for the Bitcoin hard fork to trade beyond $266.

BCH/USD 1-week chart

But if Bitcoin Cash price fails to breach this barrier again, it might not bounce back from the support of $229 and likely fall through it. This would invalidate the bullish thesis and send BCH hurtling towards $200.