Bitcoin Cash sinks 12% in a week: Can bulls stop BCH from sliding to $188?
If BCH can defend the $220-$240 pocket, a price recovery could become much more likely.
Bitcoin Cash [BCH] is down 7.7% in the past 24 hours and has shed 12% over the past week. The quick, bearish price reaction was likely a result of the hawkish fears following the speech of Federal Reserve Chair Kevin Warsh at Jackson Hole.
BCH’s Open Interest was down 9.6% in a day, reinforcing the bearish short-term pressure on the altcoin. Interestingly, the long-term trend was also bearish.
Was the recent rally only a minor reprieve for Bitcoin Cash?
For two years, BCH traded within a range (purple), which it lost in May. The August rally has only been a retest of the lower bounds of this long-term range as resistance. The rejection from $300 showed sellers still have the upper hand.
The technical indicators were firmly bearish, too. The CMF was at -0.24 to signal heavy capital outflows, and the RSI was at 39 to show that bearish momentum was prevalent. The OBV was trending downward in 2026 as well.
The $188 support from 2023 has been defended so far. Based on the weekly chart, it appeared to be only a matter of time until this support, too, was broken.
Bitcoin Cash tends to trade like a leveraged Bitcoin asset. This means a bull market for the latter could see a recovery for BTC and a potential rally beyond $300 later in 2026 for BCH.
Traders’ call to action – Keep an eye on the bullish case
On the 1-day timeframe, the structure has begun to shift bullishly. A local high of $250 from July has been flipped to support. At the time of writing, the altcoin was testing this area as a demand zone.
The CMF and momentum signaled capital inflows and upward momentum, but the $250 area is critical. A price drop below $222 would considerably hurt the chances of a Bitcoin Cash recovery in the coming weeks.
As things stand, traders can be hopeful of a price bounce but should be ready to cut a losing trade in case of a Bitcoin Cash price drop below $222.
Final Summary
- Bitcoin Cash presented a firmly bearish outlook in the long-term after its rejection at $300.
- If Bitcoin can climb past $82k, and if BCH can defend the $220-$240 pocket, a Bitcoin Cash recovery could become much more likely.
