Bitcoin Cash Price Analysis: BCH/USD Forming a Consolidation Block, Gearing for Another Jump Towards $500

  • BCH/USD bulls enjoyed chunky double-digit gains, post reports of Bitcoin.com and Binance support of Bitcoin Cash hard fork.
  • Price action is moving within a consolidation block, subject to an extended move higher.

The Bitcoin Cash price entered a new consolidation block after its chunky 11% rocket higher. That initial rally coming on the back of reports suggesting both Bitcoin.com and Binance with support the upcoming Bitcoin Cash hard fork, as reported by the team at CCN.

BTC/USD has been moving like clockwork within the past trading week, after recovering from the heavy selling pressure on Monday 29th October. A decent bounce was seen on 31st October, as the $400 mark remained well protected by support just above. The coin gained over 5% with that pullback.

Following the chunky surge on the 31st, a period of consolidation and range block formation, we saw a breakout that further was further helped by the above-mentioned Bitcoin Cash hard fork support.

The key thing to note is that price action is demonstrating behaviors to the text book: breakouts higher, to then enter consolidation, followed by a large surge. Given the recent price developments, it wouldn’t be too surprising to see a further move north to come.

Where Next for BCH/USD?

BCH/USD 60-minute chart

The current range block is seen between $470-460. Any convincing move above $470 will likely invite further buying pressure, seeing renewed bullish momentum, keeping in-line with the recent behavior of movements. A near-term target would likely be for the big psychological $500 mark.

Should the lower part of the mentioned range fail to hold, and the bears manage to pierce this area, expect a fast reversal move south. Given the recent advance in such a short space of time, a 100% pullback can occur just as fast. If in any case, would see $400 under threat again.

In terms of the RSI, at the session high on Friday, within $476 territory, the price was well into oversold territory. As a result, cooling from that high into the range block has been observed. The easing lower out of oversold area, gives bulls another chance to potentially run BCH/USD higher.

In consideration of all above and current upbeat fundamental developments that continue to surround Bitcoin Cash, the favor does sit within the bulls’ camp presently; the key will be how they respond to the range block.

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.

Featured image courtesy of Shutterstock.

 

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.

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