This week, Bitcoin Cash faced a notable decline in its price after slipping below the crucial psychological support level of $400. The downturn has raised concerns that the cryptocurrency may revisit its lows from 2025 if the bearish trend continues to gain momentum.
Summary
- Bitcoin Cash’s price has dropped over 11% below the important $400 support level, reaching its lowest point since early March.
- Bearish momentum has strengthened after a MACD bearish crossover, with the RSI falling near 21, signaling severe oversold conditions.
- Analysts are identifying the $320–$340 range as the next significant downside target if BCH cannot reclaim the lost $400 support zone.
Data from crypto.news shows that Bitcoin Cash (BCH) experienced a decline exceeding 11%, trading around $359 as of May 18. This drop marks one of its largest single-day decreases in recent months, pushing BCH to its lowest level since early March as sellers regained control in the market.
This correction occurs amid a broader retracement in the altcoin market as investors retreat from riskier assets following Bitcoin’s recent rejection at local highs.
Although there have been sporadic price increases linked to Bitcoin rallies and renewed speculative interest in legacy proof-of-work cryptocurrencies, Bitcoin Cash has struggled to sustain bullish momentum in recent months.
Often seen as a high-beta proxy for Bitcoin due to their common origins and similar payment narratives, BCH has notably lagged behind BTC in the latest market cycle.
Market sentiment for Bitcoin Cash has diminished as trading activity and capital flows increasingly shift towards newer blockchain ecosystems and assets focused on institutional investments.
Furthermore, derivatives sentiment has worsened as bearish positioning intensified following the recent breakdown below support.
On the daily chart, Bitcoin Cash has decisively fallen beneath the significant $400 support zone, which had acted as a major support level for the past several months.
This breakdown further confirms the ongoing bearish trend that has persisted since BCH failed to reclaim the $640 resistance earlier this year.
Momentum indicators suggest that sellers continue to dominate the market. The MACD has signaled another bearish crossover, and the histogram shows expanding negative momentum bars, typically indicating increasing downside pressure.
Meanwhile, the RSI has dropped into oversold territory near 21, reflecting extremely weak short-term buying strength following the latest downturn. While oversold RSI conditions might occasionally trigger temporary relief rallies, they also highlight the severity of the current bearish trend.
This recent breakdown heightens the risk for Bitcoin Cash to return to its 2025 lows near the $320–$340 range if sellers continue to defend the broken $400 support as new resistance.
A further decline below this level could expose BCH to a sharper correction towards the psychological $300 mark.
On the positive side, bulls must first reclaim the $400 level to stabilize short-term momentum. A successful recovery above this range may allow BCH to test the next significant resistance area around $440, although overall momentum continues to heavily favor sellers.
Disclosure: This article does not constitute investment advice. The content and materials presented on this page are intended for educational purposes only.
