Crypto & Forex May 22, 2026 0 Comments

Bitcoin Cash Just Took a Nasty Hit — Here’s Why a Massive Bounce Could Be Right Around the Corner

Bitcoin Cash [BCH] sure knows how to keep everyone on their toes—or perhaps trapped in a waiting game. Can you imagine an altcoin hanging out within a price range for over two years? Since April 2024, BCH has been bouncing between $272 and $684, like a pendulum stuck in slow motion. For swing traders, this marathon range feels almost like a buffet of opportunities—plenty of room to pivot and play the market with some real gusto, rather than the usual quick dips and spiking frenzy.

But, here’s the kicker: last month, the forecast was grim. After BCH brushed up against the $480-$500 area—a hotspot for short liquidations—it didn’t just hesitate; it took a nosedive. The short-term support at $460 buckled, and BCH plunged over 25%, crashing from $465 to a low of $348.3. Ouch. So, the pressing question now is: have we hit the pit stop, or is this bearish ride about to rev up again? It’s like watching a thriller where the hero’s fate hangs in the balance—will the market breathe a sigh of relief, or will the sellers keep tightening their grip?

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Bitcoin Cash [BCH] has been trading within a range for just over two years. Since April 2024, the once-prominent altcoin has been constrained to within the $272-$684 range.

This range is massive in both time and size, giving swing traders many more opportunities to enter the market with conviction than lower timeframe ranges might.

A month ago, AMBCrypto reported that BCH was likely to continue its downtrend after revisiting the $480-$500 magnetic zone of short liquidations.

This expectation has come to pass. The $460 short-term support zone, once ceded to the sellers, quickly gave way to a 25.16% Bitcoin Cash drop from $465 (bearish retest) to $348.3.

Has the bearish impulse move ended, or should traders expect further losses?

Technical indicators suggest an overextended market

Bitcoin Cash 1-day Chart — Source: BCH/USDT on TradingView

The biggest sign that the impulse move downward might be over was the high-volume slide to $348, followed by a lower-timeframe bounce.

The large downward candlewick on Monday, the 18th of May, told a story of an overextended price move.

The RSI was at 26, within the oversold territory, while the Stochastic RSI appeared to form a bullish crossover. Together, they signaled a potential short-term bounce.

The Fibonacci retracement levels (cyan) were plotted using this impulse bearish move. A bounce to $418 is likely, though it can extend as high as $459 and the $489 swing high.

Therefore, traders can look to utilize a bounce to these levels to look for shorting opportunities. It must be noted that a retest of the key Fibonacci levels is not an automatic sell signal.

An internal structural shift on the lower timeframe price chart, such as the 1-hour, can be used to increase the odds of a successful trade.

It is also possible that BCH bears will not allow a sizeable bounce. Depending on the wider market sentiment in the coming days, a bounce might struggle to clear the $400 area before falling to make new lows.

Traders should avoid FOMO and have clear rules to follow before entering. Rather than buying the bounce, swing traders might find a more feasible opportunity in selling the bounce.

Final Summary

The Bitcoin Cash rejection at $465 resulted in a 25% price slide that reached a swing low of $348.
The current bounce is just a relief rally, and the trend continues to favor the sellers.