Bitcoin Cash Plunges 12% Amid Hawkish Fears and Bearish Technicals

Bitcoin Cash (BCH) has been on a downward trend over the past week, losing 12% of its value. This bearish reaction is attributed to the hawkish fears that followed Federal Reserve Chair Kevin Warsh's speech at Jackson Hole. BCH's Open Interest was down by 9.6% in a day, reinforcing the short-term bearish pressure on the altcoin.

The long-term trend for BCH also appears to be bearish, with the altcoin having traded within a range for two years before breaking out of it in May. The August rally has been seen as only a minor reprieve, with the rejection at $300 indicating that sellers still have the upper hand.

Technical indicators such as the CMF and RSI are also bearish, showing heavy capital outflows and prevalent bearish momentum. However, BCH tends to trade like a leveraged Bitcoin asset, meaning that a bull market for BTC could see a recovery for BCH beyond $300 later in 2026.

Despite this, traders should be cautious as the $188 support level is still at risk of being broken. A local high of $250 from July has been flipped to support, but a price drop below $222 would significantly hurt the chances of a BCH recovery in the coming weeks.