Bitcoin Cash appears ready to surrender more against Bitcoin as it seems poised for another leg down. There does not seem to be much in the way of bullish indication, and we see some very large 'Bart Simpson' patterns, which are notoriously hard to trade. We must revert to levels analysis, and protect ourselves from losses at all costs, as best we can anyway. Volatility has dried up completely as measured by the ATR, which suggests we may see another collapse soon. Trade this pair at your own risk.
The bear momentum is very strong with BCHBTC, and even beginners can recognize the bear Elliott Wave impulse. We do observe some difficulty breaching lower as BCHBTC seems comfortable in the 0.07's. In fact, 0.06624 seems to be a hard lower bound for this pair for now. If not, we can consider the 0.05 handle for footing, in particular 0.05159, which is the lower anchor of our Fibonacci levels, and should prove difficult to usurp.
There is a small chance that we are forming an inverse head and shoulders pattern, but we need to wait for BCHBTC to break to the upside to complete the second shoulder. In general, it is unwise to preemptively trade this patter, lest we get caught if the pair makes new lows.
As with the other cryptos, we are likely to get bought back at lows after the breakdown. If bull momentum reignites and we can break past current levels, 0.08695 will be the first to provide resistance. After that, we have to look to Fibonacci levels for more insight, but it is doubtful we will need to consider these any time soon.
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The bear momentum is very strong with BCHBTC, and even beginners can recognize the bear Elliott Wave impulse. We do observe some difficulty breaching lower as BCHBTC seems comfortable in the 0.07's. In fact, 0.06624 seems to be a hard lower bound for this pair for now. If not, we can consider the 0.05 handle for footing, in particular 0.05159, which is the lower anchor of our Fibonacci levels, and should prove difficult to usurp.
There is a small chance that we are forming an inverse head and shoulders pattern, but we need to wait for BCHBTC to break to the upside to complete the second shoulder. In general, it is unwise to preemptively trade this patter, lest we get caught if the pair makes new lows.
As with the other cryptos, we are likely to get bought back at lows after the breakdown. If bull momentum reignites and we can break past current levels, 0.08695 will be the first to provide resistance. After that, we have to look to Fibonacci levels for more insight, but it is doubtful we will need to consider these any time soon.
Thanks for the read! Please consider giving me a like and a follow. Also, check out my profile and other social media!
