Technical Analysis and Market Entry: Bitcoin Cash (BCH/USD) Bulls are Looking for $600 and Beyond
- The Bitcoin Cash (BCH) price is continuing the 2019 recovery in a ruthless nature, now up 530% since the late 2018 low.
- BCH/USD bulls smashed out from a bullish pennant pattern, inviting a further wave of buying pressure.
BCH/USD: Recent Price Behavior
Bitcoin Cash’s bulls have been stampeding ahead with a strong push of gains. There is no sign of slowing down these buyers at present, as momentum remains very much to the upside. The price is demonstrating similar qualities to the bull run that was seen in 2017, where BCH run up to highs of $4,400.
Since bottoming down at $74, BCH/USD has recovered some 530% to the recent high print of $514 on 22nd June. The price continues to claw back the brutal losses of 2018, as it edges closer to the pre-hard fork level of early November 2018.
To put into context the progressive nature of the current bull run, over the last eighteen weeks, BCH/USD has closed in the green fifteen of those. Any dips that are seen with the price are short-lived, only providing a further opportunity for buyers to drive BCH higher. The current bullish conditions haven’t been seen since 2017.
Bullish Pennant Breakout
As mentioned in the previous Bitcoin Cash article, price action had formed a bullish pennant pattern structure. The formation began as the price was consolidating, following chunky buying pressure in early May. On 21st June, the bulls forced a daily breakout and closure above the structure. Playing out to the textbook, the following session on 22nd June saw a new wave of buying pressure.
At the time of writing, BCH/USD remains firmly above the pennant, as the price remains elevated following the breach. A daily retest of the structure has not yet been seen, which could then invite another bout of momentum to the upside. Typically, such price patterns are liable to the pullback, before resuming in the respective direction.
Should BCH/USD complete a successful retest and hold of the pennant, this could provide further confirmation for taking an additional buy. The pullback would mean a potential entry back down around $435. BCH/USD will need to hold just on top of the structure via the daily chart. In confluence to the pennant, a decent area of demand does track from the $440-$400 price range.
In terms of upside targets; $600 is the next area of interest. Further north, then the bulls would likely target $800, where the price last traded at the start of August 2018. A stop would be placed below the pennant and demand area at $380.
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.