Bitcoin Cash (BCH) drops 25%—relief rally seen, but bears stay in control
Bitcoin Cash (BCH) just suffered a sharp 25.16% selloff, falling from about $465 to a swing low near $348.3 after a rejection around the $480–$500 short-liquidation zone and the $460 support area.
The article flags signs that the immediate impulse may be over: a high-volume slide into $348, a lower-timeframe bounce, RSI near 26 (oversold), and Stochastic RSI showing a bullish crossover. A Fibonacci analysis suggests a relief bounce is plausible, with likely targets around $418 and extensions toward ~$459, then $489.
However, the piece cautions traders not to treat any retest of these Fibonacci levels as an automatic sell signal. It argues the broader trend still favors sellers, especially if BCH fails to reclaim and hold above the $400 area before pressure returns to set new lows. Traders are advised to avoid FOMO and consider rules-based entries—potentially selling the bounce rather than buying it—unless there is a clear lower-timeframe structural shift.
Author/Source: AMBCrypto technical analysis (not investment advice).
Bearish
The article’s setup is for a short-term relief move, but its conclusion leans bearish. After BCH’s ~25% drop into $348.3, oversold readings (RSI ~26) and a bullish Stochastic RSI crossover support a bounce toward $418–$459 (and possibly $489). Yet it repeatedly frames this bounce as a “relief rally,” warning that bears may defend $400 and likely look to push for new lows.
This aligns with a common pattern traders have seen after sharp liquidation-driven selloffs: first an oversold mean-reversion bounce, then renewed trend selling if higher-timeframe structure hasn’t flipped. Unless there’s a clear lower-timeframe (e.g., 1H) structural shift, the higher-probability trade plan suggested is to sell/short the bounce near Fibonacci/overhead resistance rather than chase long entries. In the short term, volatility may rise as traders position around $418/$400; in the longer run, if BCH fails to reclaim key levels and convert them to support, the downtrend risk remains elevated.