Bitcoin Cash Price Analysis: BCH/USD Conquers $200, Where Next?
- Bitcoin Cash is comfortably trading above the psychological $200 mark.
- BCH/USD bulls must breakout from recent range-block formation for greater upside.
The Bitcoin Cash price at the time of writing on Monday, has made a big push above the psychological $200 mark. Another wave of buying pressure came into play, following a short three-day consolidation period. Out of the last eight sessions now, BCH/USD has seen daily closures in the green for seven of those. The price having gained as much as 220%, since the commencement of the bull run on the 16th December.
Near-term Range Block
Despite that Bitcoin Cash is continuing to grind higher, as detailed above, there is a range-block it must breakout from. This can be observed via the 1-hour chart view, the high of this seen at $237, with the low around $172. It has been moving within this since the 20th December, with the range clearly becoming narrower. Behavior such as described, typically on a technical front, could see an imminent explosive breakout.
Should the bulls manage to do as described and force a breach, then another powerful wave of buying pressure could follow. Looking to the upside, there isn’t too much in the way of resistance until the $410 mark. As can be observed via the 4-hour chart view, the range-block detailed, could be perceived as a bullish pennant pattern. This of course being another confluence for further upside momentum.
The $410 target had initially provided some support, before giving way on the 15th November. Market bears had forced a break lower, then retested underneath for a short-period, before hard selling resumed. Further to the north, eyes will be on a reclaim of the pre-November fall levels, up at around $650. Between August to November, $650 was the upper part of that range within this period, the low being $410.
In terms of safety nets for BCH/USD, eyes would be on the $172 as a vital near-term support. As described via the 4-hour chart view, this is the lower part of the recent range. Any failure to hold, could see a very fast and punishing bull reversal. Given how fast and freely the price moved back up to recent heights, it has every right to fall straight back down. The price could be forced to trade sub $100 levels again, with the bottom at $73.50 coming under threat.