Bitcoin Cash Price Analysis: BCH/USD Bulls Force a Breakout Above a Huge Resistance Trend Line
- Bitcoin Cash continues upside momentum, running at its second consecutive session in the green.
- BCH/USD bulls make a big push above long-running descending trend line.
BCH/USD Price Behavior
The Bitcoin Cash price was seen trading in positive territory again in the early part of trading on Wednesday. BCH/USD is running at its second consecutive session within the green, as the bulls seek strong recovery. Over the past 13 sessions, Bitcoin Cash has been stuck within a very mundane trading range. This has been observed across the crypto market, not just for BCH, as participants refused to commit following the December bull run.
In terms of the mentioned narrow daily range, the high of this is seen at $138.00, the low at $117.00. This has been the tightest and longest form of trading since October 2018. When at the time, BCH/USD moves within a range of $473.50 the high, to $407.00 the low. It had moved within this for some 23 sessions. The current range still seen today has been much narrower.
Vital Trend Line Break
BCH/USD has been confined below a long-running trend line, in play since 7th November. At the time, the price had just re-entered another steep bear market. It had dropped a chunky 88% from November to the low print in December 2018. The price drop was from $650.00 down to $73.50 in a matter of some 6 weeks, which were consecutive weekly closures in the red. There had been several attempts to break above this descending trend line in December and January 2019.
In yesterday’s session, 22nd January, the bulls clearly made a purposeful break above the detailed resistance. BCH/USD gained chunky double-digits of almost 12%, moving and closing over the trend line. Momentum in the session today, as can be seen so far in early trading, is resuming north following that breakout. Given the daily closure above it does put the bulls back in the driver seat to further capitalize on this technical development.
Despite the mentioned advance from the bulls, it is still important to note that the price is still very much contained within the narrow daily range. For another wave of buying pressure, BCH/USD will need to breakdown the upper part of the range barrier. As detailed, this can be seen at $138.00, which is the 12th and 14th January high. The price has not traded above this level since 10th January, just before it was summoned to the range.
Looking to the upside, given the recent move, the bulls must now focus on the coming barriers seen just ahead. Firstly, BCH/USD will need to breakdown $147.00, which is the low of a range observed between 25th December – 9th January. Further north, $177.50, the upper part of the mentioned range, is the next target. Lastly, in terms of near-term resistance, a chunky area of supply runs from $200 up to $241. This was the high print for 21st December, but also where the upside began to slowdown for the bulls.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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