Bitcoin Cash has broken the major historical downtrend line convincingly and has come to its first major resistance point, $400. It looks like we're forming a classic cup and handle pattern which is often characterized by some price discovery, taking profits, selling off, before breaking upwards, retesting resistance, and breaking out.
All of this is pretty normal and a very healthy pattern. If you are looking to enter, sweet zones will be in the $367 and $345 range with next target being the 1.618 fib uptrace, which conveniently aligns with a prior resistance point.
Charted entry is based on being able to get 340ish. Adjust appropriately if you enter in the 360s. Ideally on this you'd only want to stop out if it falls back through the major downtrend line convincingly. I think chances of that happening with the November drama coming is very slim since I believe Cash's major players and the large movers that have been accumulating will want Bitcoin Cash to be bullish so it can contend for the title, and in such a vastly oversold market, they're definitely in control.
Cash has exploded out of the $400 resistance line with very little flagging involved. That itself shows major bullish divergence.
It also shows why analysis is great, but it's always important to adjust dynamically to real world market conditions.
Right now I'm thinking the target is still the same at ~$467 and so one can safely enter above $400. Long trades are most certainly trading with the trend right now.
Very nice looking chart, easy on the eyes. I want to hold some BCH long-term so still looking for good entries. I have fishing orders all the way down that fib and beyond. Thanks for sharing.
RiversAndMountains
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@emonda, The way I think of it now that it's entering a bull run is this: If I buy at $412 or $401 or $388, does it matter?
If you bought Bitcoin Core at a 3 digit price, doesn't matter if it's $999. You just won the lottery.
Logic applies even more here since if Cash succeeds we'll see _real_ parabolic ATHs because it can be used effectively as a currency due to the blocksize.
So_Cratee
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@RiversAndMountains, Agreed, personally as a trader, I don't trade or make entries based on fundamentals (as do a lot of people), but I will make an exception for BCH since I'm also going to be holding. Fundamentally and even politically BCH is in a very unique position. Even more so with all of the subsequent fork drama.
RiversAndMountains
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@emonda, I agree that fundamentals are arguably the most useless thing a lot of the time and some of the biggest reasons people get played by charlatans and pump groups.
The exception is in bear markets. Then fundamentals are the only thing that matters since the chart is always a falling knife, and the question of "is this thing ever going to actually be worth anything" becomes immediately important and incredibly profitable.
farrokh.ansari.1977
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Thnak you.
May I ask for an apdate analysis on where to re-enter?
RiversAndMountains
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@Farrokh.ansari.1977, For sure. I released a new post on Bitcoin Cash this morning. In the update at the bottom I have ideas about re-entry.