Bitcoin Cash Price Analysis: When is BCH/USD Taking Another Extended Move Higher?
- The Bitcoin Cash price behavior suggests another imminent breakout is likely. Upside surprises appear move likely than any potential downside breakouts.
- BCH/USD continues to move within a bullish pennant pattern formation. Narrowing price action indicates a breach is near.
The Bitcoin Cash price after the huge surge to the upside on 26th September, attributed to the Bitmain IPO news, has remained elevated. Risks appear tilted to the upside, given current price behavior and technical patterns observed. Outside of the technical view, news flow and updates have remained positive around Bitcoin Cash.
News Flow Remains Positive
Bitcoin Cash adoption continues to take place. It was reported that the events ticketing company, Bigtickets.com, has expanded its payment options, with acceptance of cryptocurrency. Customers will be able to pay using Bitcoin Cash. The CTO said “We know our dedication to innovation is deserving of a secure and seamless purchase method for our event attendees. The use of Bitcoin Cash is a major social trend we’ve been following. Therefore, we’re excited to be one of the first event ticketing platforms in the United States to accept the burgeoning cryptocurrency,”
Elsewhere, earlier in the week, TD Ameritrade, announced it is investing in a cryptocurrency exchange platform, ErisX. This will be facilitating a range of products, including crypto futures contracts. Fortunately for Bitcoin Cash, it has earned its way into the top 4 cryptocurrencies by market cap. Given its status, Bitcoin Cash will be one of the crypto futures products offered by ErisX.
This follows news back in August, Crypto Facilities announcing a Bitcoin Cash futures product. Crypto Facilities are regulated by the UK Financial Conduct Authority (FCA). The move came given Bitcoin Cash has a growing presence and acknowledgement across the market. The introduction of Bitcoin Cash futures is joining the company’s other crypto-based products.
Near-term Analysis (60-minute chart)
Eyes are locked on BCH/USD movement within a bullish pennant pattern formation. Price action is well-supported by the lower trend line. It for now remains within consolidation mode, after the strong surge on 26th September. The price is moving towards the end of the pattern, into a narrower range. This behavior suggests a breakout could very much be imminent, subject to bullish momentum.
Resistance to the upside is seen at the above trend line of the pennant, $523. Given the pole of the mentioned pattern, the breakout may be chunky. A retest of the supply around $640-$660, will therefore be the likely first target area. The price last traded in this region from the 1st to the 4th September. Support is eyed around $510-509, as mentioned above, the lower trend line of the pennant.
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.