Bitcoin Cash: Back to Max Consolidation?
Updated
After closing our longs from our previous thread, the RSI made a selling signal, we continue to trade in a downtrend channel, and we have failed to trade above the major fibo resistance level. The selling pressure may be returning!
We had a bearish confirmation at $639 and a minor uptrend line break. One more white uptrend line remains to be tested. Over Bitcoin Cash's short trading history, it has a tendency to return to a specific fibo level. So here's the game plan:
A break below the fibo support/major key fibo support at $543-539 should offer a breakout to the downside. A break of the blue uptrend line can serve as the next breakout confirmation. A break of the key fibo support at $446 (MIN TP) will offer further downward confirmation to bring us to the MAX TP at $357. Below this level, we have a fibo extension target at $250.
Alternatively, if we break and close above the bullish confirmation at $688 we can set a target for $824 as MAX TP and then reevaluate.
We should also watch the BCHBTC chart, where price action may be reentering the downward channel.
Cheers and GLWT!
-Erik
We had a bearish confirmation at $639 and a minor uptrend line break. One more white uptrend line remains to be tested. Over Bitcoin Cash's short trading history, it has a tendency to return to a specific fibo level. So here's the game plan:
A break below the fibo support/major key fibo support at $543-539 should offer a breakout to the downside. A break of the blue uptrend line can serve as the next breakout confirmation. A break of the key fibo support at $446 (MIN TP) will offer further downward confirmation to bring us to the MAX TP at $357. Below this level, we have a fibo extension target at $250.
Alternatively, if we break and close above the bullish confirmation at $688 we can set a target for $824 as MAX TP and then reevaluate.
We should also watch the BCHBTC chart, where price action may be reentering the downward channel.
Cheers and GLWT!
-Erik
Note
Possible harmonic sell at $638? Note
Wahooooooooo!Note
Close margin short if we breach the white line to the upside...In the other chart, it was a false breakout!
Trade closed: target reached
Note
Sideways for now, swings are good for day trading but not much else.RSI is bearish too.
Back above the channel here:
The day chart shows a heavily overbought RSI....
Note
Nice!Trade closed: target reached
HAha the short target was reached during the crash. We have remarkably returned to the previous level, but now the bullish trend line has been compromised.Note
Breakout to the upside!Trade closed: target reached
$824 hit! Now we need to wait for another pattern, since the trend line is so far away its too risky to short.
Trade closed: target reached
OH MY GOD TIS WAS A MONSTER TRADE!Look at that daily RSI near 90! I think it still has some room to go in the BCHBTC chart..lol
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