Bitcoin Cash May Explode to $450 After Being Oversold

Bitcoin Cash was one of the top losers in the top 100 on Monday. It has been in a downtrend since last week but shows signs of a rebound.

It retraced below $400 for the first time since June 2025, and slipped below $350 a few hours ago. At its lowest, it was down by almost 14%. However, it has rebounded, but is still down by over 6%.

In hindsight, the asset has been in a downtrend since last Monday. It lost the $425 support on Friday and has been cascading since then. Last week, it lost over 12%.

While the selling pressure sipped into the new week, there are growing concerns that it may worsen in the coming days. It is worth noting that most assets in the top 100 are currently declining amid bearish fundamentals.

Tensions in the Middle East flared up again. Over the weekend, the US president made a statement that served as a rude awakening for investors who thought the war with Iran was over.  The market reacted to the recent downtrend. The selloffs worsen after Iran failed to sign an agreement with the US.

However, it appears the tensions have quelled at the time of writing, as Donald Trump recently announced that he called off another set of military strikes following meetings with allies. Most cryptocurrencies are currently recovering, and BCH is not exempt.

With fundamentals turning slightly positive, it remains to be seen whether the crypto market will see a massive upward movement this week. Nonetheless, indicators suggest that the altcoin under review will see significant buybacks this week.

Bitcoin Cash to Reclaim $425

Since its rebound a few hours ago, Bitcoin Cash is struggling to flip $380. On the 4-hour chart, it has failed to break above the mark after three attempts.

Nonetheless, the 52 VWMA suggests that after flipping this mark, the asset will likely retest $400. The likelihood of this happening is significantly high as RSI dropped below 30 a few hours ago. Although it has recovered, the coin may continue to rise.

Interestingly, BCH is still oversold on the 1-day chart. The relative strength index is at 24 and has slipped even lower in the past few hours. In hindsight, this is the first time the indicator has dropped to this level in recent memory.

Nonetheless, the asset being oversold is the first basis to expect significant buybacks in the coming days. Aside from the indicator, previous price movements show that Bitcoin Cash has not had a sustained fourteen-day downtrend without rebounding. If the trend holds, the asset will surge higher this week.

Interestingly, derivatives funding rates are currently negative. They’ve been negative over the last two days, suggesting a possible short squeeze. Additionally, open interest soared to its highest in almost fourteen days. Investors are paying closer attention to the asset, which may aid its recovery.

In the event price plays out as predicted by these indicators, Bitcoin Cash will reclaim its lost level this week. One such is the $425 support. The 52 EMA suggests it may attempt $450 afterward.

Away from BCH, other assets like FLR and AERO also massively bled over the last 24 hours. They shedded 8% and 6% respectively.

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