Bitcoin Cash Price Analysis: Here Come the Bulls, as Price Finally Breaks Bullish Pennant
- Bitcoin Cash price edges over a bullish pennant pattern to the upside.
- Bulls will need to capitalize on this breach. Next major upside target would likely be $575, where a supply zone is seen.
Bitcoin Cash Developments
Looking at the news flow side of things, CoinText.io, an SMS service to send cryptocurrency, expanded its services further with Bitcoin Cash. The offering will now support Bitcoin Cash (BCH) wallet to Hong Kong, Israel and Palestine. The founder and lead developer of CoinText, Vin Armani, said “these are important regions for us to connect because they’re financial centers”.
CoinText is a for-purpose FinTech organization, that are making cryptocurrency easy to use as money. They are the first full-featured SMS cryptocurrency wallet, which does not require apps, accounts, passwords or Internet.
4-hour Chart – Technical Review
BCH/USD price action had been moving within a bullish pennant pattern. The formation started taking shape after the big bull run from 26-27 September. Since the peak up around $575, supply zone territory, consolidation has been observed. A gentle cooling has been seen, with the price managing to maintain above the psychological $500 level. During the session of 7th October, it edged over the upper resistance of the pennant. The bulls however did not make a convincing move and close above. It will be vital that this is capitalized on in order to see further buying pressure. In terms of Fibonacci levels, worth of note that resistance is in play at the 61.80% area. This is tracking around $528. The price has already faltered on several occasions, observed earlier this month.
Daily Chart – Technical Review
In terms of the daily time frame, the current daily candlestick is making solid progress. It is vital now as mentioned earlier, that this closes above the upper trend line of the pennant. Momentum should see the price test the $575 supply. A clearance above this zone, will then bring the 100DMA into play to be tested, $610. BCH/USD has not been as high as this area since 6th September. The ultimate upside target for the bulls will then be on the $650 territory. Bulls faltered heavily there back on 3rd September. Control was firmly handed over to the bears, seeing the price drop around 37%, down to $410. Referring back to the breach seen of the pennant, eyes must be peeled for a potential break higher and retest.
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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