Bitcoin Cash [BCH] declined 7.7% in the past 24 hours and shed 12% over the past week, driven partly by hawkish sentiment following Federal Reserve Chair Kevin Warsh's speech at Jackson Hole.
Open Interest in BCH dropped 9.6% in a single day, reinforcing near-term bearish pressure on the asset. The technical picture remains concerning, with the Chaikin Money Flow at -0.24 signaling heavy capital outflows and the Relative Strength Index at 39 indicating strong bearish momentum.
Long-term Resistance and Support Levels
Bitcoin Cash had traded within a range for two years before breaking lower in May. The August rally only retested the lower boundary of this range as resistance, with sellers rejecting prices at $300. The On-Balance Volume indicator has trended downward, adding to the bearish case.
The $188 support level from 2023 has held so far, though analysts view it as a matter of time before this level faces pressure.
Short-term Technical Outlook
On the daily chart, price structure has begun showing some bullish signs. A local high of $250 from July has flipped to support, and BCH was testing this area as a demand zone at the time of writing. Capital inflow signals and upward momentum indicators suggest potential for a bounce.
However, a break below $222 would significantly diminish recovery prospects in the near term. Traders monitoring the asset are advised to remain cautious, as the $220-$240 range represents a critical zone for determining the direction of recovery.
Path Forward
Bitcoin Cash's recovery prospects remain tied to broader market conditions. If Bitcoin climbs past $82,000 and BCH successfully defends the $220-$240 support pocket, a more sustained recovery becomes possible.
