Bitcoin Cash plunged below the $272 support range it had held for over two years, succumbing to heavy selling pressure in May. The altcoin tested a critical long-term support near $188, briefly bouncing to around $240, but has since reversed course heading into July.
May marked a sharp decline for Bitcoin Cash, which lost nearly 42% in value against Bitcoin amid increasing bearish momentum. Market indicators like the MFI and CMF revealed persistent selling through June, signaling trouble ahead. The August 2023 swing low of $165.4 still stands as a key level; breaking below it on the weekly chart could confirm a deeper downtrend.
Short-term Price Moves Show Mixed Signals
Despite the overall negative outlook, shorter-term charts tell a different story. The 4-hour chart reflected some bullish swings, with buying pressure pushing the Chaikin Money Flow indicator into positive territory. Buyers have actively defended support near $209.3 over the past week. However, any dip toward $196.9 remains risky given the prevailing lower timeframe downtrend.
The recent rally up to $255 appeared driven by a hunt for liquidity, with short liquidations clustered around $260. Since peaking, the price pulled back. While brief rebounds to levels like $227 or $243 are possible, the dominant momentum suggests Bitcoin Cash could slip further below the psychologically important $200 mark.
This ongoing weakness happens against the backdrop of Bitcoin itself struggling to hold above $67,000, keeping the broader market bearish. Investors monitoring Bitcoin Cash should watch the $200 zone closely, as a breakdown below this may accelerate losses and push the altcoin into new lows.
This content is for informational purposes and does not constitute financial advice.
