Bitcoin Cash (BCH) has entered oversold territory, with its relative strength index (RSI) dropping to 28 — a zone that often signals a potential reversal. The cryptocurrency is now pressing against the lower Bollinger Band at $198.70, a technical level that could determine its next move.
Why selling pressure is intensifying
All major moving averages are stacked well above the current price, confirming a strong downtrend. On top of that, negative funding rates are adding to the pain. Traders who held long positions are seeing their positions squeezed as persistent negative funding eats into their equity. This “trapped longs” setup can accelerate declines if enough leveraged positions are forced to liquidate.
Two paths for BCH — bounce or breakdown
From current levels, two scenarios stand out. A bounce from the lower Bollinger Band could push BCH back toward the $215 resistance area. That move would require a rapid shift in momentum and a drop in selling pressure. The alternative is a breakdown below $198.70, which could open the door to a slide toward $177 — a level not seen since mid-2023, according to price history.
What traders are watching next
The immediate focus is on whether BCH can hold the lower band. At RSI 28, the asset is deeply oversold, which historically has preceded short-term bounces. But with moving averages stacked overhead and negative funding still squeezing longs, any rally may face stiff resistance. The next few trading sessions will be critical to see if buyers step in at the band or if pressure forces BCH to test lower ground.
