Many people are confused as to what BCH is, why its going up and why it isnt dead. Everyone tends to just echo what they hear, how is its a scam, how its useless or how its a shitcoin, without even doing any research or critical thinking. Bitcoin cash is a clear example of why Bitcoin will ultimately fail in the end and why anything can just take its place. Bitcoins biggest struggle is its lack of governance as well as its slow confirmation times and increasing fees; rendering it useless for what its purpse was created for. Bitcoin Cash is to be honest and quite frank, a better version of Bitcoin and a step towards taking initiative. The fact that anyone can fork Bitcoin and dedicate power to the network shows you there is nothing proprietary about Bitcoin as well as anything can dethrone it at any given moment. Bitcoin Cash's hashrate as well as volume is nothing to be joked about and needs to be taken serious and understood, especially if you want to preserve your capital in this game. Lets now go to technicals.
Whenever you have sideways price action, that pretty much sets a precedent and creates belts of possible support or resistance for the future. Measuring BCH's initial rally and throwing a fibonacci retracement on it, just like any market, gives you an idea of where the best possible buy zone can be; usually between the 786-883, sometimes even lower if volume dries up and true fear sets in. Notice how this area aligns perfectly with a past consolidation zone, this situation is very key, especially if you can spot it in other markets. BCH has had amazing volume and momentum and insane buy support from day 1, once again signs that something is to come in the future. Notice how we had a nice break of the downtrend as well as two confirmation tests that it is now support and likely to carry on. Price found stability in the prior support zone and it was a matter of time before a breakout; all the signs were there.
Once volume entered the market in the consolidation zone, that was the clear signal. As the price broke out and began to get expansive, notice how it met key resistance at two prior breakout zones that became resistance later on in the retrace, as shown in the red horizontal lines; those were your two best take profit targets. The price fell short on the second one, however this is why you need to curb your greed in these markets, especially as Bitcoin still has the spotlight on it.
In the short term, a third wave is very possible to manifest, especially if Bitcoin does retrace a bit here as expected. Considering the volume in BCH, many coins are changing hands and it is likely it will want to hold its USD value, especially with the uncertainty and upcoming BTC fork. BCH is a better version of Bitcoin, nobody can argue that, unless they had their personal intentions in mind as many miners do. A possible idea that can play out is a double top fake out with a quick ABC correction after Wave 5 and then we continue on to new ATH. The 1d stochrsi is likely to reset which can in this wave 4 that is manifesting however the 3d has room to grow which is a sign that we may finish with a strong wave 5. A lot of this would be reliant on what Bitcoin decides to do and how this fork is handled. Ideally if you are not in the trade, I would be looking to rebuy as close to the trend line as possible in anticipation for wave 5. This incoming volume is not a joke. Ill be updating the idea in the comments as we progress.
Whenever you have sideways price action, that pretty much sets a precedent and creates belts of possible support or resistance for the future. Measuring BCH's initial rally and throwing a fibonacci retracement on it, just like any market, gives you an idea of where the best possible buy zone can be; usually between the 786-883, sometimes even lower if volume dries up and true fear sets in. Notice how this area aligns perfectly with a past consolidation zone, this situation is very key, especially if you can spot it in other markets. BCH has had amazing volume and momentum and insane buy support from day 1, once again signs that something is to come in the future. Notice how we had a nice break of the downtrend as well as two confirmation tests that it is now support and likely to carry on. Price found stability in the prior support zone and it was a matter of time before a breakout; all the signs were there.
Once volume entered the market in the consolidation zone, that was the clear signal. As the price broke out and began to get expansive, notice how it met key resistance at two prior breakout zones that became resistance later on in the retrace, as shown in the red horizontal lines; those were your two best take profit targets. The price fell short on the second one, however this is why you need to curb your greed in these markets, especially as Bitcoin still has the spotlight on it.
In the short term, a third wave is very possible to manifest, especially if Bitcoin does retrace a bit here as expected. Considering the volume in BCH, many coins are changing hands and it is likely it will want to hold its USD value, especially with the uncertainty and upcoming BTC fork. BCH is a better version of Bitcoin, nobody can argue that, unless they had their personal intentions in mind as many miners do. A possible idea that can play out is a double top fake out with a quick ABC correction after Wave 5 and then we continue on to new ATH. The 1d stochrsi is likely to reset which can in this wave 4 that is manifesting however the 3d has room to grow which is a sign that we may finish with a strong wave 5. A lot of this would be reliant on what Bitcoin decides to do and how this fork is handled. Ideally if you are not in the trade, I would be looking to rebuy as close to the trend line as possible in anticipation for wave 5. This incoming volume is not a joke. Ill be updating the idea in the comments as we progress.
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Analysis going exactly as planned. Price bounced off a key breakout zone, hopefully confirming support. If the trend holds, we continue for a wave 5. Lets see.
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Under $600 is still a buy.
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What an amazing trade. Perfectly nailed the buyzone @ 523 prior to the huge breakout. We ran all the way to the 3.618 extension of the first cycle. In the long run, if we can hold 1k, I would expect another rally above and beyond, especially if BCH does takeover Bitcoin.