Bitcoin Cash Goes Up By a Little Then Down By a Lot
Updated
My outlook for BCH/BTC is bullish in the short-term but bearish in the medium-term.
I am looking at a possible bounce at this support area, which could serve to validate the ascending support line as resistance, after which I think the price will decrease to the second support area at ₿0.0325.
My main reason for this belief is the RSI and the previous breakdown:
The RSI was above 50 for the entire ascending support line, and dropped below right at the time of the breakdown, suggesting that the upward move has ended.
So, the proposed bounce would also likely cause the RSI to validate the 50-line as resistance and go down afterwards.
The ₿0.0325 are should offer very strong support, since it is the previous breakout level and also supported by the 200-day MA.
Ideally, I would look to short near ₿0.0425, with the aim of re-entering lower near ₿0.0325, in anticipation of the continuation of the move.
I am looking at a possible bounce at this support area, which could serve to validate the ascending support line as resistance, after which I think the price will decrease to the second support area at ₿0.0325.
My main reason for this belief is the RSI and the previous breakdown:
The RSI was above 50 for the entire ascending support line, and dropped below right at the time of the breakdown, suggesting that the upward move has ended.
So, the proposed bounce would also likely cause the RSI to validate the 50-line as resistance and go down afterwards.
The ₿0.0325 are should offer very strong support, since it is the previous breakout level and also supported by the 200-day MA.
Ideally, I would look to short near ₿0.0425, with the aim of re-entering lower near ₿0.0325, in anticipation of the continuation of the move.
Note
In the short-term, the price is trading inside a descending wedge, out of which it looks likely to break out and reach the ideal shorting target.Note
While the price did not increase all the way to ₿0.0425, it went half-way before decreasing. Expecting the target to be reached within the next two weeks, depending on how the BTC price movement unfolds.
Note
Re-entered a long-trade about 8% lower. I am expecting a breakout from the ascending triangle,where I will look to short once more.
Trade closed: target reached
Trade closed, target reached.
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