BCH has bounced on a strong support level, formed by a swing trend line coming from nov 2018. Also the coin is within a narrow negative trend channel; often a tightening of the channel indicates a change in direction.
BCH is correlated to BTC with a ratio of 0.47 - based on daily closes. It is far more correlated to Santiment, QTUM, DASH or IOTA (> 0.70). So the impact of BTC isn´t to be overvalued. Nevertheless, if BTC has a good sentiment, then the altcoins, BCH included, have a good run either.
With the help of BTC or ETH (corr 0.42) BCH should have enough support to stay on the support and to gain some strength.
To give really positive signs it must break the trend channel to the top and remain outside.
Once it has done this the first aim can be the swing trend line at 1.056$ and after this the fib retracement 23.6% at 1.195$. This second resistance is strong and we should take some profit.
Stop / no invest: if the actual support is broken to the bottom!
Indicators: RSI low but climbing; hasn´t broken the trend yet. ADX DI- falling; perhaps a trendchange? Volume: lowest level ever!!! the risk for malinvestments is higher at markets with low levels!
Trade active
⋅
BTC isn´t only on a strong support which is still valid. But it´s also in a symmetrical triangle. The peak of the triangle and the limit of the descending channel are crossing each other. Probably a decision point.