Hello All,
In the past, this has been one of my favorite crypto currencies to trade simply because it was very volatile as it has expansive upward movements that isn't always met with the same aggression downwards making exits simpler. However, I currently have a huge problem with this chart. If you can identify it as well, then, it is probably serving as a nuisance to you as well.
The problem is the gap: the reason why this is a problem is that is serves as a true reversal point, and it will be very difficult for price action to pass this region. The gap show true resistance at the BCH:BTC price than BCH:USD and I am not sure why, however, the gap is respected more so on BCH:BTC relationship. Circled in yellow, there is a double top at the median of the gap which was a prior low before a relief rally and an extreme downwards gap (A second downwards trendline is formed here).
There is still potential in this chart, as there is a triple bottom which has broken its second down trend. The last second and third bottom form a double bottom in itself with a price objective of 4200 satoshi (~23% increase). There isn't much to be seen in the RSI at the moment, however, once BCH gets going, it moves with strength. I suspect there may be a small consolidation at this price point before an extreme thrust upwards if we do not have a thrust upwards immediately. Otherwise a rejection here would mean that it would be testing prior lows denoted by the green rectangles. (Opacity of the boxes themselves resembles their strength)
In the past, this has been one of my favorite crypto currencies to trade simply because it was very volatile as it has expansive upward movements that isn't always met with the same aggression downwards making exits simpler. However, I currently have a huge problem with this chart. If you can identify it as well, then, it is probably serving as a nuisance to you as well.
The problem is the gap: the reason why this is a problem is that is serves as a true reversal point, and it will be very difficult for price action to pass this region. The gap show true resistance at the BCH:BTC price than BCH:USD and I am not sure why, however, the gap is respected more so on BCH:BTC relationship. Circled in yellow, there is a double top at the median of the gap which was a prior low before a relief rally and an extreme downwards gap (A second downwards trendline is formed here).
There is still potential in this chart, as there is a triple bottom which has broken its second down trend. The last second and third bottom form a double bottom in itself with a price objective of 4200 satoshi (~23% increase). There isn't much to be seen in the RSI at the moment, however, once BCH gets going, it moves with strength. I suspect there may be a small consolidation at this price point before an extreme thrust upwards if we do not have a thrust upwards immediately. Otherwise a rejection here would mean that it would be testing prior lows denoted by the green rectangles. (Opacity of the boxes themselves resembles their strength)