Long

End of Bitcoin Cash Consolidation

Updated

Data from the BCHBTC chart is showing us a possible end of consolidation date for Bitcoin Cash. This could produce a monster wave 5 trade. I advise caution trying to interpret the BCHUSD (not the BCHBTC) chart, as it is biased by the USD value generated by the BTCUSD chart (at least this is my theory). We should make preparations to hold this trade September 14th - 15th. This is a trade you do not want to miss. If you have questions regarding "USD chart bias" please post a comment in the section below so that everyone can see the response.

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We've seen these over and over again... :P

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Here is a side by side comparison. Notice the fibo lines.
Aug 14:

Sept 6:

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After touching the 0.5 fibo, the consolidation continues. Unfortunately the consolidation will now be longer due to these silly bulls.

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I just want to update this post for those following. I will do the same on the BCHBTC post. We are at a support zone in both charts. Because my BTCUSD chart is telling me we should expect further downward pressure, it does not fare well for the BCHUSD chart. Here is why:

As you can see, we are at the 0.5 fibo support in the BCHUSD chart. This support will puncture if we see a fall in the BTCUSD chart.

Meanwhile, in the BCHBTC chart I can envision another 30% drop to the trend line if we fall below the min fibo level to finish consolidation.

What all this means, in dollar terms, BCH is facing downward pressure from dollar losses in the BTCUSD chart TOGETHER with consolidation pressure in the BCHBTC chart. Combined that could be about a 40% haircut in dollar terms from where we are now. I sold my position at the max fibo level after picking up in the trading zone I discussed in the BCHUSD thread.

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We breached the min fibo with the RSI pointing down. Supports are marked on the chart.

In the BCHUSD chart we are at the trend line. This is one of those moments where its tempting to buy. But as you can see, we could see the min fibo level again, or even the major support at $410.

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Here is a comprehensive look at the recent BCHBTC data. The most recent bullish trend line could be breached. If this happens, we have wave 1 support that could reverse the market. If we continue toward the main trend line, the market may only revisit the max fibo. So we are faced with two situations. In terms of time, something will have to give by October. This period coincides with the end of a structural wave 4 in the BTCUSD pair. I anticipate a structural wave 5 in the BTCUSD chart, so I am long Bitcoin Cash.

Please note, there is now a possible top end line that could reverse the market pretty hard.

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We are now heading toward wave 1 support level. There is also a kind of recent bullish trend line we can find in the data. However, this line has not been tried and tested.

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Bitcoin Cash is going the alternative route.

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We just had a possible institutional liquidation of Bitcoin Cash (please see volume).

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Lets take a look at this rally :)

Notice how supply was mopped up. Thats a lot of BCH! Now we have the corrective wave-B unfolding. I don't think this is a break out. If you are thinking about getting involved, the problem here is that the trading range is huge (blue lines on the chart). The top of the trading range is way up there. There are multiple resistance points where this rally could end, most likely with a bang.

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New thread:

Bitcoin Cash Consolidation: New Low or Structural Wave 5?

Trader6127

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