Analyzing Bitcoin Cash’s 10% drop: What’s next for BCH whales?

Bitcoin Cash [BCH] declined roughly 10% over the past day.

Interestingly, whale-sized orders dominated activity across BCH’s Spot and perpetual markets during the decline.

What were BCH whales doing?

Analysis showed whale-sized orders dominated both markets during the past 24 hours.

Average Order Size measures the average volume traded per transaction. The Futures Average Order Size stood at 164.47, compared with the Spot Average Order Size at 152.51.

Whale involvement can shape market direction. However, Average Order Size alone cannot reveal whether those orders were buys or sells. Their actual Spot and Perpetual positions offered a clearer view of their directional influence.

Positioning split: spot holds, futures sells

There’s a split in the positioning across both sides of the market. In the futures market, the surge in order size corresponded with a growth in selling pressure in the perpetual market.

The Bitcoin Cash [BCH] Open Interest Weighted Funding Rate, at the time of this writing, has become extremely negative, with a reading of -0.0244% on the chart.

This implies that, in relation to the capital in BCH’s perpetual market, roughly $356 million, the majority of the positions are from sellers in the market. This implies whales are more likely to have opened short positions on BCH within this period.