There's plenty of speculation on the cause of BCH's moonshot launch yesterday, but regardless of whether the price action was natural or forced by a whale and his apostles, the move was a bit much. Friends don't let friends mix fomo and momo. Volume at or near ATH on the way up to setting the ATH right near the previous ATH means a double top resistance and far fewer buyers on the way down. MACD bear crossover will occur in 2hr chart, already occurred in shorter times. Upward momentum is gone. Is it simply pausing to jettison stage 1 before igniting stage 2? If not, it will go down as fast as it went up.
My idea is open a short anywhere above 950, or even 900. As I struggled for an hour trying to make a chart (LOL) it has been chopping around in the 930 to 990ish range. Short anywhere from there, but absolutely MUST have a tight stop on this because we have seen how quickly it can go into orbit. My stop is at 1005 which represents a break through resistance at local highs and psychological level of 1000. First target at fib level and support level of around 770. If it makes this target take profits as soon as the MACD shows fading momentum, and must take profit if there's a bullish crossover. If momentum continues down, I'll set a new stop around 800 and new target at the next fib level, which also corresponds with breakout point for moonshot - roughly 625. It would be wise to take profits a bit sooner than that, about 650, because there is strong support over a large range there.
This is my first try publishing an idea and it makes me appreciate the effort expended by all the people who are frequent contributors - I am shocked how many great ideas are published here! (Hint: this is unlikely to be one)
Hopefully no one shorted based off your idea of 900 area... The Market can stay irrational much longer than you can hold your short
majeranek86
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nice point of view. Now everything can happen - consolidation(from my point of view most likely)with support around 880, another breaktout(less likely) and drop to the lower zone (smallest chance from my point of view). apart from AT we need to look also for fundamental analysis. it seems that people started to like bch, and it's trend goes different than it used to - connected to bitcoin . the truth is in the pudding though, we shall see.thanks for your insight !