Bitcoin Cash (BCH) plunged below a consolidation range that had held for more than two years after intense selling pressure dismantled its $272 support level. This breakdown marked a decisive shift in the coin’s outlook, dragging its price down toward the long-term support near $188. A short-lived rebound to around $240 failed to gain traction and began reversing by late June, signaling persistent downward momentum.
The altcoin’s strength relative to Bitcoin (BTC) deteriorated sharply in May, losing nearly 42% of its value during the month as Bitcoin itself struggled to reclaim levels above $67,000. Indicators such as the Money Flow Index (MFI) and the Chaikin Money Flow (CMF) plummeted, reflecting heavy and sustained selling pressure that pushed BCH deep into bearish territory.
Examining the weekly chart highlights the significance of the $165 swing low established in August 2023. This level had previously fueled a strong uptrend rally to $719, but breaking below it would confirm a bearish reversal on the weekly timeframe. Market signals suggest this breakdown is increasingly probable if negative momentum persists.
Shorter-term price action offers a more nuanced view. On the four-hour chart, BCH showed some bullish tendencies with positive CMF readings indicating intermittent buying interest. Support near $209 was defended by buyers over recent sessions, and small rallies toward $227 and $243 remain possible as brief retracements within the broader downtrend. However, these are likely relief moves amid an overall declining trajectory.
Recent price spikes approaching $255 appear driven by attempts to liquidate short positions, creating temporary liquidity hunts rather than sustainable strength. The failure to hold above this zone reinforces the dominant bearish trend, making a drop below $200 the more likely scenario in coming weeks.
Bitcoin Cash’s breakdown of its long-held trading range and critical technical supports highlights the challenges facing its recovery prospects. Investors should monitor key support levels near $188 and $165, as breaching these could trigger further declines, while short-term bullish signals on lower timeframes offer only limited reprieves within the overarching downtrend.