Bitcoin Cash (BCH) faced a brutal weekend, plunging 38% from Friday’s highs. The price hit critical support levels, but signs of recovery are emerging. Is this the beginning of a turnaround, or will the downtrend continue?
BCH’s Steep Decline
BCH experienced strong bearish momentum, breaking below $320. This drop followed a rejection from the descending trendline near $444, marking the end of corrective wave (iv) in the Elliott Wave pattern. The price fell sharply, breaching the 0.618 Fibonacci retracement at $271, and reached as low as $241.86—a critical support level.
Signs of Recovery
After hitting oversold conditions, BCH saw a relief rally, hovering around $313. The Relative Strength Index (RSI) suggests potential for short-term gains. However, strong resistance looms at $349.44 (1.272 Fib retracement) and $388.29 (0.786 Fib retracement). Bulls need a decisive breakout above these levels to shift the trend.
Key Levels to Watch
- Immediate Resistance: $349.44
- Key Support: $291.25
- Critical Support: $241.86
- Bearish Target: $211.32 if selling pressure continues
What’s Next for BCH?
On the 1-hour chart, BCH remains in a bearish structure, likely in wave (iv) of a larger downtrend. A minor rally could target $349.44 before another decline towards $241.86 or even $211.32. However, if today’s spike to $271 signals the end of the correction, BCH might be entering a new bullish phase.
To confirm a bullish reversal, BCH must establish strong support and break above $388.29. Until then, short-term bounces should be viewed cautiously within the broader downtrend.
Final Thoughts
Bitcoin Cash is at a critical juncture. The current recovery could either be a temporary bounce or the start of a new bullish phase. Traders should watch key resistance levels and seek strong confirmation before making moves. The coming days will reveal if BCH can defy the bearish trend or if more downside awaits.
