Bitcoin Cash Price Analysis BCH / USD: Another $10 To Liftoff
Bitcoin Cash has moved away from the worst levels of the trading month, with the cryptocurrency now trapped in a period of sideways consolidation around its monthly opening price.
A run-up in price to $232.64 over the last few hours, however, has begun to indicate that a breakout could be imminent.
The BCH / USD pair is still technically bearish over both the short and medium-term, leaving the prospect of further downside ahead for the cryptocurrency. However, failure to maintain price below the $215.00 level also leaves the possibility of an upside rebound on the table.
Looking at the upside potential for the BCH / USD pair, a breakout above the $242.00 level would be extremely bullish for the cryptocurrency in the short-term for various technical reasons.
A move above the $242.00 level would invalidate a bearish head and shoulders pattern on the lower time frames. The BCH / USD pair’s 200-period moving average on the four-hour time frame is also located at the $242.00 level.
If a bullish breakout does occur, the BCH / USD pair should rally toward the $290.00 level. A sustained break above the $325.00 level would confirm that the medium-term bear trend is likely over.
Looking at the downside, a break under the $215.00 would be negative for the BCH / USD pair this week. The $200.00 level is currently the neckline of the bearish head and shoulders pattern, and could trigger a substantial decline towards $160.00 level if broken.
Sentiment
According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Bitcoin Cash is neutral, at 52.00 %, while the overall long-term sentiment towards the cryptocurrency is also neutral, at 49.00%.
BCH / USD H4 Chart by TradingView
Upside Potential
The four-hour time frame highlights that bulls need to move price above the $242.00 level to invalidate a bearish head and shoulders pattern. The BCH / USD pair has only limited technical resistance until the $290.00 level.
The daily time frame shows that a major technical breakout could occur if bulls rally price above the $325.00 level. It is worth noting that a rally of over forty percent would have to occur in order for this to happen.
Downside Potential
The four-hour time frame is currently showing that the short-term trend remains extremely bearish while price trades below the $215.00 level.
The daily time frame is showing that price could fall towards the $160.00 level if a breakout occurs below the current September trading low.
Summary
Bitcoin Cash faces a pivotal trading week ahead as price consolidates around its yearly opening price.
Technical analysis on the lower time frames highlights that a breakout from the $215.00 to $242.00 trading range will likely determine the next directional large move.
A run-up in price to $232.64 over the last few hours, however, has begun to indicate that a breakout could be imminent.
The BCH / USD pair is still technically bearish over both the short and medium-term, leaving the prospect of further downside ahead for the cryptocurrency. However, failure to maintain price below the $215.00 level also leaves the possibility of an upside rebound on the table.
Looking at the upside potential for the BCH / USD pair, a breakout above the $242.00 level would be extremely bullish for the cryptocurrency in the short-term for various technical reasons.
A move above the $242.00 level would invalidate a bearish head and shoulders pattern on the lower time frames. The BCH / USD pair’s 200-period moving average on the four-hour time frame is also located at the $242.00 level.
If a bullish breakout does occur, the BCH / USD pair should rally toward the $290.00 level. A sustained break above the $325.00 level would confirm that the medium-term bear trend is likely over.
Looking at the downside, a break under the $215.00 would be negative for the BCH / USD pair this week. The $200.00 level is currently the neckline of the bearish head and shoulders pattern, and could trigger a substantial decline towards $160.00 level if broken.
Sentiment
According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Bitcoin Cash is neutral, at 52.00 %, while the overall long-term sentiment towards the cryptocurrency is also neutral, at 49.00%.
BCH / USD H4 Chart by TradingView
Upside Potential
The four-hour time frame highlights that bulls need to move price above the $242.00 level to invalidate a bearish head and shoulders pattern. The BCH / USD pair has only limited technical resistance until the $290.00 level.
The daily time frame shows that a major technical breakout could occur if bulls rally price above the $325.00 level. It is worth noting that a rally of over forty percent would have to occur in order for this to happen.
Downside Potential
The four-hour time frame is currently showing that the short-term trend remains extremely bearish while price trades below the $215.00 level.
The daily time frame is showing that price could fall towards the $160.00 level if a breakout occurs below the current September trading low.
Summary
Bitcoin Cash faces a pivotal trading week ahead as price consolidates around its yearly opening price.
Technical analysis on the lower time frames highlights that a breakout from the $215.00 to $242.00 trading range will likely determine the next directional large move.
