Bitcoin Cash (BCH) Price Risks Correction Following Failed $500 Breakout

Key Takeaways

• Bitcoin Cash failed to hold above $450 and now trades at $430.45, casting doubt on a near-term rebound.
• Rising wedge breakdown and bearish MACD crossover suggest weakening momentum for BCH.
• Only a sustained increase in buying pressure could flip momentum and send BCH back above $491.06.

Bitcoin Cash (BCH) potential run to $500 tough to crack, triggering concerns of an extended correction. Earlier in the week, the Bitcoin Cash price retested $450, raising hopes that the rally would extend beyond this threshold.

But that did not happen. Instead, as of this writing, BCH has declined to $430.45, with indicators showing that a clear rebound is off the table.

With bullish momentum fading, where will Bitcoin Cash be in the short term? Let’s analyze this.

Bitcoin Cash Slips Into Bearish Territory

On the 4-hour chart, Bitcoin Cash’s price rose from $378.46 on June 5 to $450 yesterday, June 11. This price action helped BCH hit higher lows and highs.

The recent BCH price action has formed a rising wedge, typically a bearish setup that hints at a looming breakdown. The pattern indicates that buying momentum is weakening, and sellers are starting to take control.

True to form, BCH has broken below the wedge’s lower trendline, confirming the breakdown. At the same time, the 12-period EMA (blue) has crossed below the 26 EMA (orange), triggering a bearish crossover on the MACD, which has now slipped into negative territory.

This further reinforces the bearish outlook. Therefore, if the technical setup remains the same in the short term, Bitcoin Cash price risks dropping to the underlying support at $407.35, with resistance at $445.33.

Recovery Hopes Fade

On-chain data paints a bearish picture for Bitcoin Cash. According to IntoTheBlock, the average holding time of transacted BCH has plunged 36.65% over the past seven days.

Typically, a rise in this metric signals low selling pressure. But the sharp drop suggests holders are liquidating their assets, fueling the ongoing correction.

BCH could break below $400 if this trend continues, putting further pressure on an already fragile setup.

BCH Price Analysis

The daily chart adds more weight to the bearish case for Bitcoin Cash. The Chaikin Money Flow (CMF), which tracks buying and selling pressure,  has dipped below the zero line, signaling that sellers are gaining control.

If this trend holds, BCH is unlikely to reclaim the $448.20 resistance, let alone push toward the key 0.618 Fibonacci level at $491.06.

Instead, mounting sell pressure could force the price below the $398.58 support, opening the door for a deeper drop toward $341.37.

On the contrary, if buying pressure increases, the CMF reading might climb past the zero signal line. In that scenario, the altcoin’s value could break the resistance at $491.06.

Once successful, this could drive the price toward $556.89 near the 0.786 Fibonacci level.