It is hard to see if you have the rhysomes covered by the bark media but I would make sure they are not covered.
Most likely you have some root rot which is why the Pbulbs began dying off.
I would treat with a copper fungicide both the media and the plant...it takes about a week for the "medicine" to work.
You can actually water a cattleya as much as you want IF the roots are permitted to DRY in between watering. I think of it as a wet/dry cycle. Bark does not dry as quickly as hydroton/Prime Agra which is what I use. And for example, a mounted cattleya would dry out daily. So you have to adjust your watering to the media.
Bark is difficult to use in low humidity environments(read: a home) as the outer bark will dry(dessicating and damaging roots) when the inner bark is still wet(causing rot)....and it makes for a plant that can go downhill quickly when it goes
Bark is nicer for phals imho as they are not suppose to completely dry out in between watering. But being that it is readily available you can use it successfully if you keep in mind that cattleyas absolutely require a wet/dry cycle.
I would also soak the bark mix in some water with KLN solution. You only need about a tsp per gallon and one application is enough. This will help to stimulate root growth.
Make sure you remove the dead roots and use a rhysome clip if necessary to hold the plant in the media.
The plant will be more likely to root down if it is firmly set.
Your cattleya needs high indirect light(3000-4000 candles) and good air movement. Humidity also needs to be around 60% or more.
Furthermore, to bloom you also need diurnal temp fluctuations of almost 20 degrees. Sure you can get a bloom without the temp changes....but not as reliably or as well.
Hope that was helpful and good luck