fiki

Where is the Rocket Ship? Far Beyond the Battle Fields ... — BCH

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BITFINEX:BCHUSD   None
Hey crypto friends! What's up? Since my last update BCH got shaken up by price developments coming from main influencer BTC . There we had a head and shoulders formation which led to a price decline to $11.050 and which is still stabilizing in order to complete the right shoulder of the big inverse head & shoulders (IH&S) formation. In the case a) BTC manages to complete its right shoulder and b) manages to breakout above the neckline, I see below described potential battles against trendlines for BCH. In case BTC fails to breakout, we have to reassess the situation and may see some bearish development. So in the positive case we may see the following battles:

  • A - Top of downward channel: We are still expecting BCH to breakout of the downward channel . There were various not so successful attempts so far.
  • B - 50 EMA: BCH has to regain support from the 50 EMA (orange).
  • C - Neckline IH&S: The red dashed neckline offered heavy resistance recently. In case we reach the neckline, we may see some bounces or pullbacks.
  • D - Fib 0.618: Once ABC are overcome the next challenge is the 0.618 retracement from the $1.630 high.
  • E - 200 EMA: Another very important resistance to overcome. Especially when allied with F (see next bullet).
  • F - Fib 0.5: Another Fibonacci retracement to conquer, probably showing heavy resistance, especially when allied with the 200 EMA (see E).
  • G - Fib 0.382: Having successfully beaten all resistances from A to F this one should be rather easy to master.
  • H - Target of IH&S formation: Having surpassed all resistances from A to G we may reach our envisioned target which is measured as the height of the inverse head added to the neckline of the inverse head & shoulders formation.
  • I - BCH rocket ready for lift-off? Watch BCHBTC pair: Just in case BCH is successful in all of the battles from A to H and in the case BTC breaks out of its neckline with a potential price gain of $5.000 (from roughly $11.500 at neckline to $16.500) or more than 40% then we should direct our attention to the BCHBTC pair. Below chart shows a falling wedge pattern from the 0.20489 BTC high on Jan 10, 2018. Yesterday the price touched a long-term low of 0.11001 BTC per BCH which represents a bounce off from the bottom of the falling wedge . Current price action shows a development back into the tip of the wedge . In case we manage to get back up to the 0.786 Fibonacci retracement we will touch the top of the falling wedge at roughly 0.13 BTC per BCH. This gives us a potential price range for BCH in case BTC reaches its $16.500 target anytime soon: $1.815 (for the current price of 0.11 BTC ) to $2.145 (for 0.13 BTC or the top of the falling wedge pattern). In case we have a breakout of the falling wedge we may see BCH reaching former highs like 0.20 BTC . In this case we may even target the $3.300 range which would represent an increase of more than 250% from the current price level. But this is very hypothetical at this point-in-time.

Let's further observe price action and focus on the first few bullets towards the IH&S target. Comments and thoughts are very welcome. Thanks for your attention. ;-)

*** The information provided here is no recommendation to buy or sell. It's just an idea for educational and discussion purposes. ***

Comment:
A and B are conquered as it seems. We keep observing.
Comment: By the way: if you like my ideas and analyzes I would be happy about a click on the thumb up button. Thanks! ;-)
Comment: BCH is approaching the neckline. BTC price development is supportive.
Comment:
Bounce off of neckline which is offering resistance.
Comment:
We have a breakout of BCH above the neckline which coincides with the breakout of BTC.
Comment: It looks like that with BTC a big head & shoulders formation formed within the right shoulder of the inverse head & shoulders formation. The head is roughly $500 in size ($11000 to $11500). That's probably why we fell from $11'600 to $11'000 despite the breakout. This has an effect on BCH of course.
Comment:
The BTC breakout resulted in a consequent breakdown. BCH is still above the pink trendline, but at risk of further downtrend if breaks below the pink trendline. Trade carefully. We keep observing.
Comment:

Impressive sudden developments of BCHUSD and BCHBTC. =)
Comment: Developments look bearish. BCH is again approaching the pink trendline, the top of the downtrend channel. Let's continue observing what support BTC will have in its current downfall.
Comment: It looks like a head & shoulders pattern is forming with the BTCUSD pair. It has a big bear flag attached to it. So I think we will continue on our way down. Let's see whether BTC finds some support on lower trend lines.

Comment: We have ignition and liftoff of the BCHBTC rocket. BTCUSD seems to have found a bottom.

Comments

Nice work, thanks :-)
+1 Reply
fiki astrologychick
@astrologychick, Thanks, appreciate it. ;-)
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By the way: if you like my ideas and analyzes I would be happy about a click on the thumb up button. Thanks! ;-)
+1 Reply