Long-term bearish trend threatens Bitcoin Cash's recovery from $200 - AMBCrypto
Bitcoin Cash [BCH] fell below a range that it had traded within for over two years. The critical support level at$272was shattered by the selling pressure in May. A test of the$188long-term support yielded a. . .
Bitcoin Cash [BCH] fell below a range that it had traded within for over two years. The critical support level at$272was shattered by the selling pressure in May. A test of the$188long-term support yielded a bounce to$240, which has begun to reverse since the end of June. The altcoin’s relative strength against Bitcoin [BTC] evaporated in May. In that month, BCH had shed nearly42%, a sizeable decline that continued into June. WithBitcoinstruggling to climb back above$67k, and the market maintaining a bearish bias, here’s whatBitcoin Cashinvestors need to watch out for. Will Bitcoin Cash bulls sink or swim at $200?Source: BCH/USDT on TradingViewAs covered earlier, the downward momentum picked up in May. The MFI raced from49. 8in the second week of May to14. 64by the third week of June. Similarly, the CMF also slid below-0. 05to indicate incessant selling underway. In August 2023, the swing low at$165. 4had been the one that propelled the Bitcoin Cash uptrend up to$719. Therefore, this swing low is the one that must be breached to flip the weekly swing structure bearishly. It appeared likely that this bearish scenario would soon unfold. Lower timeframe Bitcoin Cash price action shows bullish signsSource: BCH/USDT on TradingViewThe4-hour charthad a bullish swing structure. The CMF was at+0. 12, showing buying pressure was dominant. Yet, the token was in a retracement phase. Over the past week, the buyers have desperately defended the$209. 3support. A drop toward$196. 9would not be a buying opportunity, given the higher timeframe downtrend. Source: CoinGlassThe rally toward$255likely came as a liquidity hunt. There still is a pocket of unswept short liquidations around$260. The rally earlier this month peaked at$255and has retraced since then. In the short-term, despite the H4 chart’s structure, a bounce up to$227 and $243were possible. It was more likely that prices would continue below$200, due to the bearish momentum seen since May. Final SummaryThe Bitcoin Cash range of over two years was shattered by the strength of selling in May and early June. The long-term bearish momentum is likely to continue and push BCH below $200.