Bitcoin Cash Drops 5.10% After Sell Signal, Trades at $485.39

Bitcoin Cash has experienced a significant decline, with its price dropping below the $500 mark. This downturn was triggered by a sell signal on the 3-day TD Sequential indicator, which is widely followed by traders and analysts. Following this signal, Bitcoin Cash's price fell by 5.10%, closing the latest session at $484.41. The cryptocurrency had previously reached a high of $514.60 before this sharp decline, which occurred after a prolonged upward movement.

Currently, Bitcoin Cash is trading at $485.39, reflecting a minor 0.14% gain over the last 24 hours. However, the recent candle structure indicates growing bearish momentum. Market participants are now focusing on the $465 support level, as a daily close below this point could accelerate losses and potentially lead to a retest of the $420 level. The recent price drop occurred shortly after the TD Sequential flashed a sell setup near the $520 mark, and traders are closely monitoring whether this key support will hold.

If buyers successfully defend the $465 level, Bitcoin Cash could stabilize near current levels before determining its next direction. However, if the bearish momentum persists, the next resistance point is at $420, which is traditionally considered a good buying area. In the meantime, traders will continue to monitor the price action, particularly as the effect of the TD Sequential unfolds in the near sessions.

Market metrics also show a divergence between price action and trading activity. The market capitalization of Bitcoin Cash stands at $9.65 billion, recording a slight 0.14% increase. However, the 24-hour trading volume fell dramatically by 21.52% to $246.11 million. This discrepancy suggests short-term investor conservatism, with the ratio of volume to market cap at 2.55% indicating relatively weak investor interest relative to recent price action.