Bitcoin Cash Slips Below Key Support

Bitcoin Cash Price Forecast: BCH risks drop to $450 amid rising profit-taking and bearish market signals

Bitcoin Cash (BCH) traded in the red on Thursday, hovering below the $520 mark at the time of writing. The decline followed a rejection from a previously broken ascending trendline earlier this week. Rising profit-taking activity and bearish derivatives data suggest that selling pressure may persist in the short term. Technical analysis also points to a deeper correction toward the $450 support level.

What do on-chain and derivatives data say?

• According to Santiment, the Network Realized Profit/Loss (NPL) metric shows that BCH holders have been booking significant profits this week.
• Charts indicate multiple spikes in the NPL metric on Wednesday and Thursday, signaling increased selling pressure driven by profit-taking.
• Meanwhile, CoinGlass data on the OI-Weighted Funding Rate also supports a bearish outlook.
• On Thursday, the rate turned negative at -0.0007%, meaning short sellers are paying long positions—an indicator of dominant bearish sentiment in the market.

Technical outlook: Potential drop toward $450

• On Tuesday, BCH was rejected from the ascending trendline drawn from mid-April lows, and dropped nearly 5% the following day.
• If the correction continues and BCH closes below the 200-day Exponential Moving Average (EMA) at $506.4, the next support level at $450.2 could be tested.
• The Relative Strength Index (RSI) on the daily chart stands at 39, indicating growing bearish momentum.
• Additionally, the Moving Average Convergence Divergence (MACD) showed a bearish crossover last week, which remains in effect.

Alternate scenario: If price rebounds

• Should BCH manage a recovery, it could climb toward the daily resistance level at $542.5.
• However, confirmation of this scenario would require a decisive break above technical resistance and improvement in derivatives sentiment.