Here is my view on Bitcoin Cash vs BTC for the next few months.
After ranging for half a year between 0.025 and 0.034 followed by a breakout through resistance, the price has found its support between 0.030-0.035. If we do get a bullish confirmation in terms of a huge green candle that goes +15% or +20% up then it will be a great confirmation for bullish continuation. In this case, I expect the price to reach at least 0.06.
What to expect next?
In my opinion, it is not the best idea to jump in right now and hope for a blast. We should not guess the move but rather act accordingly. Ideally, we want to sea a bullish confirmation shooting above 0.037. If that happens, it is considerably safe to open long with the stop-loss around 0.031. The risk-reward ratio in that case will be up to 5:1 or even higher.
What if...?
This scenario will be violated if the price drops sharply below 0.029. If this happens, then we might see another 1-2 months of a sideways movement before any significant price action occurs again.
Remember, the price of entry does not matter as long as the Risk-Reward Ratio is good enough and the market shows actions according to your strategy. What do I meen by that? Let's say you are expecting a green confirmation for your entry and suddenly the price moves much faster and much further than you expected. Should you still enter that trade? If it does not violates your rules for entries then yes definitely you should enter a trade. Stronger move means stronger confirmation for you and thus more confidence in your strategy.
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GENERAL RULES TO KEEP YOUR ACCOUNT SAFE:
1. Do not risk more than 2-3% per trade!
2. Try to wait for a trade with the Risk-Reward Ratio of at least 3:1
3. Always use stop-loss!
4. Do not FOMO and do not add to a losing trade
5. Remember: Patience is the key!
THIS IS NOT A FINANCIAL ADVICE so please do not follow it if you are in doubt. DYOR!
After ranging for half a year between 0.025 and 0.034 followed by a breakout through resistance, the price has found its support between 0.030-0.035. If we do get a bullish confirmation in terms of a huge green candle that goes +15% or +20% up then it will be a great confirmation for bullish continuation. In this case, I expect the price to reach at least 0.06.
What to expect next?
In my opinion, it is not the best idea to jump in right now and hope for a blast. We should not guess the move but rather act accordingly. Ideally, we want to sea a bullish confirmation shooting above 0.037. If that happens, it is considerably safe to open long with the stop-loss around 0.031. The risk-reward ratio in that case will be up to 5:1 or even higher.
What if...?
This scenario will be violated if the price drops sharply below 0.029. If this happens, then we might see another 1-2 months of a sideways movement before any significant price action occurs again.
Remember, the price of entry does not matter as long as the Risk-Reward Ratio is good enough and the market shows actions according to your strategy. What do I meen by that? Let's say you are expecting a green confirmation for your entry and suddenly the price moves much faster and much further than you expected. Should you still enter that trade? If it does not violates your rules for entries then yes definitely you should enter a trade. Stronger move means stronger confirmation for you and thus more confidence in your strategy.
========================================
GENERAL RULES TO KEEP YOUR ACCOUNT SAFE:
1. Do not risk more than 2-3% per trade!
2. Try to wait for a trade with the Risk-Reward Ratio of at least 3:1
3. Always use stop-loss!
4. Do not FOMO and do not add to a losing trade
5. Remember: Patience is the key!
THIS IS NOT A FINANCIAL ADVICE so please do not follow it if you are in doubt. DYOR!