- A - Top of downward channel: We are still expecting BCH to breakout of the . There were various not so successful attempts so far.
- B - 50 EMA: BCH has to regain support from the 50 (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 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 to conquer, probably showing heavy resistance, especially when allied with the 200 (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 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 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 . Current price action shows a development back into the tip of the . In case we manage to get back up to the 0.786 we will touch the top of the 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 pattern). In case we have a breakout of the 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. ***
A and B are conquered as it seems. We keep observing.
Bounce off of neckline which is offering resistance.
We have a breakout of BCH above the neckline which coincides with the breakout of BTC.
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.
Impressive sudden developments of BCHUSD and BCHBTC. =)