BCH - Likely drop below $300

We appear to be in an ABC (red) correction out of which we have the last leg (yellow 5th wave) of (c) to play out. The current 4h subwave will top out now at $260 (0.382 fib) or at $270 (0.5 fib).

T1 is aligned with 5th subwave and (c) wave Fib levels with assumption that this is 4th wave from Dec bottom
T2 will be a stretch goal with assumption that Dec rally is over (5 waves done)

This chart will be invalidated if price goes above $290, meaning the ABC is already done and we are in the beginning of 5 wave impulse

Count Invalidated (Bullish) : $390
Target1: $280
Target2: $245

My linked BTC chart shows the possibility of a further drop which should drag BCH down as well

Note

We lost the 50 & 100 DMA and likely 100DMA ($365) will act as resistance. 200 Day Average ($253) acted as support once (green arrow). We lose the $340 level, then that's a possibility

RSI is also dropping to the channel bottom at 20

BTW our T2 is at 200DMA

Note

T1 hit perfectly @$280. Notice how 4th wave bounced to 0.382360 (EW & Fibs are cool)

T2 ($245) may also hit the way things look with #BTC

Trade closed: target reached

I overlooked that we came withing $10 of our T2 target ($245). Which is pretty good. On a second look at the final 5th wave, we are done with 5 subwaves (blue). Now the bounce confirms it (+BCHBTC ratio)

This yellow 5 waves were textbook EW with Fibs (see chart)

imkeshav

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BTC - Everyone is bullish, Be cautious of the 5th wave

by imkeshav

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imkeshav

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