Bitcoin cash price analysis: time for a pullback
14:00, 15 January 2020
Bitcoin Cash staged an explosive rally this week, with the fifth-largest cryptocurrency by market capitalisation rallying towards $370.00.
Bitcoin Cash technical analysis shows that the cryptocurrency could stage a technical pullback below the $300.00 level
Bitcoin Cash medium-term price trend
Bitcoin Cash price analysis shows that the cryptocurrency has turned technically bullish for the first time since September last year.
Bitcoin Cash has benefited from the positive sentiment spreading through the cryptocurrency market over recent days. Bitcoin SV, Bitcoin Gold, and, of course, Bitcoin have also made tremendous upside moves this week.
The rally in the BCH/USD pair extended towards the $370.00 level, marking gains of over 90% for the cryptocurrency since January 1.
The daily time frame shows that a bullish reversal pattern has formed, although a pullback from current levels seems more likely that not at this stage.
Traders looking for a strong entry point to fade Bitcoin Cash will likely target as close to the $370.00 level as possible, with a stop above the current monthly high.
Bearish targets extend towards the $295.00 and $270.00 levels respectively.
What is your sentiment on Gold?
Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis over the short term shows that the cryptocurrency is bullish while price trades above the $215.00 level.
The four-hour time frame shows that a bearish head and shoulders pattern may be forming, with the neckline of pattern located around the $310.00 level.
The size of the pattern indicates that a drop towards the $250.00 level is possible over the short term.
Traders looking to play the bearish reversal can either wake for the $310.00 support level to break, or fade a move back towards the $350.00 level.
Watch out for a right-hand shoulder to form over the coming days to complete the head and shoulders pattern.
Bitcoin Cash technical summary
Bitcoin Cash staged a stunning rally towards $370.00 this week, marking a gain of over 90 per cent since the start of the year. The BCH/USD pair is now starting to appear overstretched.
Markets in this article