Bitcoin Cash Price Analysis: Bullish Reversal Hammer Has Finally Formed

 

  • Bitcoin Cash potential recovery is eyed given the latest technical formation.
  • Near-term support should be noted at the low of Sunday’s session at $147.
  • To the upside, a return to $410 (neckline of double top) will be good target for the bulls to reclaim.
  • Ledger, the hard wallet provider, resumes its services for BCH, as the brief halt.

BCH/USD at the daily close of Sunday 25th November managed to form a bullish hammer candlestick. This strongly indicates that foundations are being laid for a reversal, at least of the last downtrend.  The latest bounce comes after the price had dropped as much as 77%, aggressively falling from 7th November. BCH/USD had initially been enjoying the heights up at around $640, which at this time was the highest price seen since September.

Bitcoin Cash News Flow

Aside from the chaos of the Bitcoin Cash wars, there hasn’t been much in the way of positive developments to note. Recently, Ledger, the cryptocurrency hard wallet provider, resumed their services with Bitcoin Cash. Ledger had halted BCH services during the hard fork implementation, as they wanted to “to prevent unwanted transactions and potential replay attacks.” The pause had prevented users from sending BCH to their hard wallets.

Ledger updated their users via an official blog post and on Twitter: “Our Bitcoin Cash service is back online in the form of Bitcoin Cash ABC. We’re also providing you with a help center article explaining how to claim your Bitcoin Cash SV. It is recommended to do this before sending Bitcoin Cash”. Ledger is not facilitating the use of BCH SV on their system. BCH transactions must first be logged. Therefore, users should first use the Electron Cash splitting tool. More details can be seen via their blog.

Technical Review – BCH/USD

BCH/USD daily chart

As mentioned, eyes are on a recovery for BCH/USD, following three consecutive weeks of deep losses. Fortunately, there isn’t too much in the way of barriers for a decent move back north. As mentioned above, a bullish hammer candlestick formation has been seen. Typically, they tend to come into play at the end of a bearish trend. Furthermore, should momentum pick up some pace from the bulls, this could very well be the launch pad for them. Important to note the lower wick seen at $147.

Upside Targets

At the start of the fall back on 7th November, BCH/USD had seen somewhat of a double top formation. This occurred at the high of the time up at $640. In terms of the neckline as part of this set up, it is noted at $410. As a first upside target, the breached neckline would be an interesting level for the bulls to tackle. Lastly,  each session low and high during the market fall can now be considered areas of resistance for this possible recovery.

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.