Bitcoin Cash Price Analysis: Bullish Breakout is Imminent

• Lawsuit against the exchange Coinbase is dismissed by a U.S. Federal Judge for allegations of insider trading relating to Bitcoin Cash.
• BCH/USD price behavior is screaming for a breakout, the move will likely be chunky.

The Bitcoin Cash (BCH) price has been narrowing in a very extreme fashion since 15th October. As a result, it appears the price action does not have any more room to bounce. BCH/USD is coming towards the very end and tightest point within the triangular pattern. Given the extent of time it has been summoned to containment within, a chunky breakout will likely be seen.

A Federal Judge Dismisses Lawsuit Against Coinbase For Insider Trading

Earlier this week, U.S. District Judge Vince Chhabria dismissed a lawsuit against Coinbase. A resident from Arizona, Jeffrey Berk, had filed a lawsuit against Coinbase earlier this year. He claimed that the exchange facilitated insiders the ability to trade Bitcoin Cash prior to it being listed on Coinbase. He believed that this alleged action harmed investors.

Coinbase launched their own internal investigation one the back of the excessive surge in the price for Bitcoin Cash. This came some hours before the exchange announced to list the asset. The move from Coinbase largely contributed to some mass adoption of BCH, as has been the case with other cryptocurrencies they have listed. In terms of the price jump seen with Bitcoin Cash, it has somewhat preceded the official announcement. This had raised some eyebrows has to whether employees at Coinbase had perhaps acted on inside knowledge in buying Bitcoin Cash prior to the larger market.

Technical Review – 60-minute Chart

BCH/USD, as mentioned above, is moving within this triangular or pennant pattern formation. The breakout is imminent, and the range will likely be broken in an excessive fashion. Given the positive developments of late relating to BCH and the cryptocurrency market in general, bullish movement looks more probable. Immediate resistance is seen at the $450 level, in proximity to the upper descending trend line of the mentioned pattern formation. A firm clean breakout with enough momentum, does have the potential to move back into the $500 territory. Finally, should the bulls not capitalize, and the lower support fails to hold, expect a fast move back south, to test $400 to the downside. An area of demand is seen within the early $400 region.

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.

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Ken Chigbo

Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.