Bitcoin Cash (BCH) potential run to $500 tough to crack, triggering concerns of an extended correction.

Bitcoin Cash (BCH) price retested the $450 mark, raising hopes that the rally would extend beyond this threshold. But that did not happen. Instead, as of this writing, BCH has declined to $430.45, with indicators showing that a clear rebound is off the table.

Key Takeaways:

* Bitcoin Cash (BCH) faced difficulties breaking through the potential run to $500, raising concerns of an extended correction.

* Earlier in the week, Bitcoin Cash price retested $450, sparking hopes that the rally would continue beyond this threshold.

* However, the coin failed to rise further and instead slipped to $430.45, with indicators showing that a clear rebound is unlikely.

Bitcoin Cash price faced difficulties breaking through the potential run to $500, raising concerns of an extended correction. Earlier in the week, the Bitcoin Cash (BCH) price tested the $450 level again, sparking hopes that the rally would continue beyond this point.

But that did not happen. Instead, as of 09:14 (GMT+8), BCH has slipped to $430.45, indicating that a clear rebound is off the table.

As the 12-period EMA (blue) crossed below the 26 EMA (orange), triggering a bearish crossover on the MACD, which has now slipped into negative territory, on the 4-hour chart, Bitcoin Cash's price tag rose from $378.46 on June 5 to $450 yesterday, June 11.

This price action helped BCH hit higher lows and highs, forming a rising wedge, typically a bearish setup that hints at a looming breakdown. The pattern indicates that buying momentum is weakening, and sellers are starting to take control.

BCH has now broken below the wedge's lower trendline, confirming the breakdown. At the same time, the MACD has slipped into the negative zone, applying additional pressure on the bearish setup.

However, if the technical setup remains the same in the short term, Bitcoin Cash price risks dropping to the underlying support at $407.35, with resistance at $445.33.

Recovery Hopes Fade

On-chain data provides further insight into the prevailing market pressure on Bitcoin Cash. According to IntoTheBlock, the average holding time of transacted BCH has decreased significantly by 36.65% over the past seven days.

Typically, a rise in this metric signals low selling pressure. Nonetheless, the sharp drop suggests that holders are liquidating their assets, contributing to the ongoing correction.

BCH could break below $400 if this trend continues, putting further pressure on an already fragile setup.

The daily chart adds more weight to the bearish case for Bitcoin Cash. Chaikin Money Flow (CMF), which tracks buying and selling pressure, has dipped below the zero line, signaling that sellers are gaining control.

If this trend holds, BCH is unlikely to reclaim the $448.20 resistance, let alone push toward the key 0.618 Fibonacci level at $491.06.

Instead, mounting sell pressure could force the price below the $398.58 support, opening the door for a deeper drop toward $341.37.

On the contrary, if buying pressure increases, the CMF reading might climb past the zero signal line. In that scenario, the altcoin's value could break the resistance at $491.06.

Once successful, this could drive the price toward $556.89 near the 0.786 Fibonacci level.