Home Trading Bitcoin Cash Price Analysis BCH / USD: Defining Moment

Shutterstock

Bitcoin Cash Price Analysis BCH / USD: Defining Moment

BCH is yet to decide its next move.

-

  • Bitcoin Cash has a bullish short-term bias and a bearish medium-term trading outlook
  • The four-hour time frame shows that a head and shoulders pattern has formed
  • The daily time frame is showing that a neutral wedge pattern has formed

Bitcoin Cash has been on a wild ride since mid-September, with the BCH / USD pair quickly reversing from the $330.00 level towards the $197.00 level and then recovering back towards the $300.00 level.

The BCH / USD pair is currently consolidating around the $290.00 level before deciding its next directional move. At present, Bitcoin Cash trades around forty-five percent higher since October 23rd and trades around two percent in the green for the month of November.

With the broader market still in bear mode, a correction could be on the horizon for the BCH / USD pair, however, the cryptocurrency has been remarkably resilient to selling pressure this month.

SIMETRI Research

Short-term analysis suggests that if buyers can secure gains above the $305.00 level then the BCH / USD pair could stage a powerful rally towards the $390.00 level.

Looking at the bear case, a head and shoulders pattern with a $30.00 downside projection has taken shape on the four-hour time frame. For the decline to take place BCH / USD sellers would need to hold price below the $270.00 level.

Medium-term analysis shows that the BCH / USD pair is trading within a wedge pattern, with the wedge pattern showing a large trading band spanning from $215.00 to $305.00.

Overall, a breakout above the $305.00 could provoke a rally towards the $390.00 level, while a decline under the $270.00 level could trigger a decline back towards the $240.00 level.

According to the latest sentiment data from TheTIE.io, the short-term sentiment towards Bitcoin Cash, at 78.00 %, while the overall long-term sentiment towards the cryptocurrency is neutral, at 48.00%.

 

BCH H4 Chart November 12 by TradingView
BCH / USD H4 Chart by TradingView


Upside Potential

The four-hour time frame shows that a head and shoulders pattern has formed, with the BCH / USD pair likely to rally towards $335.00 level if the pattern is invalidated.

Key technical resistance for the BCH / USD pair above the $305.00 level is currently located at the $325.00 and $390.00 levels.

 

BCH Daily Chart November 12 by TradingView
BCH / USD Daily Chart by TradingView


Downside Potential

The four-hour time frame is showing that the BCH / USD pair has formed a bearish head and shoulders pattern, with the neckline of the pattern located at the $270.00 level.

The daily time frame shows that key technical support below the $270.00 level is located at the $245.00 and $215.00 level.


Summary

Bitcoin Cash is currently trading sideways, as traders await its next directional move to unfold.

Strength above the $305.00 level could provoke a bullish rally which could see the BCH / USD advancing towards the $390.00 level.

 

Check out our coin guide for Bitcoin Cash.

Bitcoin Cash Chart

 

DISCLOSURE

Authors at Crypto Briefing are invested in cryptocurrencies. The author of this post may be invested in digital assets mentioned here.

HIRING JOURNALISTS

We are currently hiring for our news team. CLICK FOR DETAILS.

797FansLike
3,920FollowersFollow
9,159FollowersFollow

More News & Analysis

X
X