Foreign media believe that Bitcoin Cash (BCH) may experience a short-term technical rebound after its recent rapid decline, but this is more of a temporary correction than a trend reversal. The article states that after losing short-term support around mid-April, BCH's price fell from $465 to a low of $348.3, a drop of approximately 25%.
The two-year range has not yet been broken.
The article points out that BCH has been trading within a wide range for the past two years. Since April 2024, the price has mainly fluctuated between $272 and $684. After encountering resistance in the $480-$500 area, the bears regained control, and the support near $460 was subsequently breached, triggering a new round of declines.
Oversold signals are starting to appear
Foreign media reports that the most noteworthy signal in this round of decline is the low-cycle rebound that occurred after the price plummeted to $348 on high volume. The long lower shadow on May 18th is seen as an indication of an excessively rapid short-term decline.
The article mentions that the RSI once dropped to 26, entering the oversold zone; the Stochastic RSI also showed signs of a bullish crossover. These signals usually mean that the market may first undergo a correction in the short term before deciding on its next direction.
The rebound range is concentrated above $418.
The article argues that, based on the magnitude of this round of decline, BCH's rebound target is initially around $418. If the rebound continues, the price may rise to $459, or even test the previous high of $489.
However, foreign media also emphasized that these levels do not necessarily indicate a market reversal. The core assessment remains that the current rebound is more like a buffer after a decline. If overall market sentiment continues to be weak, BCH's rebound may not even be able to hold effectively above the $400 area, and it may subsequently fall to even lower levels again.
The overall trend remains bearish.
The article argues that whether the short-term trend has truly turned bullish depends on whether a clear structural change emerges in a lower timeframe. Without sustained new buying pressure, the current rebound is unlikely to alter the seller-dominated market.
Based on the article's conclusion, the downtrend that BCH formed after being blocked near $465 has not yet ended, and the rebound near $348 is more of a technical correction. The market's dominant direction is still temporarily biased towards the bears.
