With the recent rally in the price of Bitcoin and the broader cryptocurrency market, Bitcoin Cash (BCH) holders have experienced a welcomed uptick in value, pushing them back into profitable territory. The majority of investors have now seen positive returns after a significant double-digit climb in the past week. However, the crucial question remains: Can the upward momentum of BCH’s price be sustained?
Both Short-Term and Long-Term Bitcoin Cash Holders Reap Profitable Returns
In a post on Thursday, the on-chain data monitoring platform Santiment revealed that both short-term and long-term holders of Bitcoin Cash are currently experiencing positive outcomes. The provided chart demonstrated that the average returns for holders with a 30-day and 365-day investment horizon have exceeded their respective average cost prices.
This indicates that individuals who entered the market within the past month, as well as those who have held their investments for a year, are currently enjoying favorable results. Notably, this marks the first instance in 10 weeks that this particular group of Bitcoin Cash investors has witnessed a profitable situation.
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Both short-term and long-term BCH traders have entered profitable territory, as indicated by data from Santiment on X.
This information from Santiment is corroborated by data from another on-chain monitoring platform, IntoTheBlock. According to their data on their website, 59% of all BCH investors are currently observing gains, while 38% find themselves in losses and 3% remain in neutral positions. Additionally, IntoTheBlock’s data shows that 96% of holders have maintained their positions for over a year, with 3% having held for 1-12 months, and 1% holding for less than a month.
Combining insights from both tracking platforms reveals that there are more long-term investors experiencing profits compared to short-term investors. This observation reinforces the enduring notion that adopting a strategy of buying and holding is often the most effective approach when investing in cryptocurrencies.
But Can BCH Hold Its Gains?
The current profitability for both short and long-term holders of the digital asset can be attributed to its recent surge in the past week. This surge was initiated by the market’s rally following the Grayscale ruling. Bitcoin Cash (BCH) witnessed a price increase of over 14%, propelling its valuation to the $220 range before undergoing a retracement. The substantial portion of these gains has been sustained so far, as indicated by the significant proportion of holders currently enjoying profits.
However, the Santiment report highlights that the future upward trajectory of Bitcoin Cash would depend on the actions of whales, prominent holders of the cryptocurrency. This is due to the notable increase in whale activity observed during the price surge, indicating their likely contribution to the asset’s appreciation.
Should these large holders continue to exert buying pressure and remain active, the value of BCH could continue its upward trend. Conversely, a shift from buying to selling among these major holders could lead to a swift decline in price, particularly given that the market is already witnessing the waning of the earlier-week euphoria.
Presently, data from CoinMarketCap reflects Bitcoin Cash trading at $219, signifying a 14.57% rise in the past week.
BCH price reclaims $220 | Source: BCHUSD on TradingView.com
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