Technical Analysis and Market Entry: Bitcoin Cash (BCH) – Explosive Bull Move Eyed
- The Bitcoin Cash (BCH) price is moving within consolidation mode, subject to further moves north.
- A bullish pennant pattern can be observed via the daily chart view; an imminent breakout is eyed.
- Buy positions from the current price territory look very much attractive, given the current technical behaviour.
Bitcoin Cash’s price remains at elevated levels, i.e. the heights that were observed back in November 2018. BCH at present is moving within consolidation mode following considerable moves to the upside that were seen at the start of April and May. The BCH/USD bulls have managed to gain a chunky 150% since 3rd April.
The price had shot higher by some 95% between 3-4 April; it then traded sideways from 5th April to 10th May as the buying pressure lost momentum. During the consolidation period, BCH/USD price action formed a bullish flag pattern. A breakout from this structure was then seen on 11th May – an explosive move north gaining 45% over five days.
Bullish Pennant: Breakout Eyed
Between 12-25th May, BCH/USD price action had been moving within the confinements of a bullish pennant pattern structure. It came again after another period of consolidation, following the flag formation breakout. The noted structure is also in proximity to a huge zone, tracking from $365 up to $410.
Should the bulls manage to force a firm breakout and closure above the detailed zone and the pennant, another massive wave of buying pressure would likely be seen. The next major area to the upside would be the $600 territory, and BCH last traded up here back in early November 2018, pre-fall levels. It was trading at these noted heights before re-entering a very steep bear market.
2019 Bull Run
Since the beginning of the year, BCH/USD is trading up a whopping 285%, solidifying the statement that the price is recovering in 2019. It comes after suffering heavily throughout 2018, hitting bottom down at $73.50. The price has managed to stable greatly and firmly regather upside momentum, as seen with this current recovery.
Given the recent settling and comfort around the detailed zone, $365-$410, further moves to the north look promising. There are two clear bullish confluences to strengthen the case for a breakout higher. Both were discussed earlier – namely, a pennant pattern structure leading to the current attempts for the critical supply zone to be broken down.
Buys from the current price area are attractive; an initial target would be for a return up to $600. Further north, eyes will be locked on $650, the high area that was seen at the start of November 2018. In terms of stops, they should be eyed just below the pennant and the zone at $330.
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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