Bitcoin Cash Price Analysis: BCH/USD Has an Opportunity to Return to $600

  • The Bitcoin Cash (BCH) price continues its run north, having gained as much as 25% over the last three sessions.
  • There is a roadmap for a return to $600, with just a few small barriers in the way.

BCH: Recent Price Behavior

BCH/USD daily chart

The Bitcoin Cash bulls are back, as the price is running towards its third consecutive session in the green. BCH/USD has jumped as much as 25% within the mentioned period, having now reversed the deep losses from 24th February. The price is now back to testing the 2019 high area, as the bulls had attempted late in February before being dealt a heavy blow. BCH used an ascending trend line as a launch pad for these recent gains, with big buying coming in after the price met with the support.

The above-noted ascending trend line has been in play since late January after the price printed a low for the year at $105. It has provided necessary comfort on several occasions since its formation. The current surge higher is the most significant move north observed since the December 2018 bull run. BCH/USD bulls will need greater momentum to carry the price through the supply zone, the $150-$160 range.

Eyes on Fresh 2019 Highs

Given the current upside momentum with the bulls, eyes are on a retest of 2019 high printed in January. BCH/USD hit a high of $175 on 3rd January before the price continued on its path of cooling. The market bulls were very much exhausted after the explosive push north observed in December, which saw highs of $240. At the time of writing, BCH is attempting to break down the first noted barrier where the price faltered on 24th February.

If a breakthrough can be seen, then eyes will be on the $170-$180 range, where the price was consolidating at the start of the year. BCH/USD could then be free to run and retest the high at the back end of 2018; sellers are camped from $220-$240. There is stability in the bull move seen of late, with the assistance of the earlier noted trend line. A recent range-breakout also played a part in the most recent explosive jump.

Between 25th February to 13th March, BCH/USD was moving within an extremely narrow mundane trading range. The price was within consolidation mode after such an aggressive selloff triggered on 24th February. The range low was $122 with the high at $135; given the extent of time within this range, it was too surprising for such a breakout to have played out. Following a fast move higher, the price could be vulnerable to a potential pullback before a continuation north.

Price Roadmap Observation

BCH/USD daily chart.

In summary, there are only a few barriers to note that are in the way of a stronger and more robust recovery for BCH/USD. There is an opportunity for the price to return quickly back up to the pre-November 2018 highs of $600. A breakdown of the following needs to be observed: $150-$160, $170-$180 and then $220-$240. If these barriers are taken out by the bulls, then the price could quickly double up to $400. There isn’t much in the way of resistance between the $200 and $400 territories. Finally, a decent push back up to the $600 price region could quickly come into effect.

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.