BCH In Depth 4/15/19: Clean Bull Flag but so Much Drama
Trader Noxtreme back with your weekly in depth analysis of BCH. Please keep in mind that I am a full time trader but not a professional investment adviser so you should do your own research on this very risky market and then come share what you learn with us. My goal is to build a community of TA based traders so if you find these analyses helpful or if you just want to support the dream please LIKE AND SUBSCRIBE.
All that being said let’s get into BCH for the week for April 15th 2019.
Sentiment:
Bitcoin Cash is the coin that a lot of people love to hate. There are two main reasons for this: 1. It is a contentious hard for off Bitcoin. 2. Roger Ver.
I will stay out of the crazy messy arguments surrounding these judgment calls. Feel free to comment your opinions below as I am willing to engage in constructive discussion.
We now also have the breaking BCHSV delisting from Binanace because of Crag’s behavior. Although Craig Wright is no longer associated with BCHABC directly I am almost sure the less educated masses will associate him. At the moment it appears that people may be exiting BSV and putting that into BCH. Moving on.
BCH In Depth Weekly: Bulls appear strong, but why?
On our weekly we have still have a large bull flag. Confirmation of the bull flag conveniently lines up to break the top of the gap from the BCHSV hard fork. Confirmation of this bull flag would be 41.4% to the upside but we have some pretty strong overhead resistance that has formed between 335 and 320 (16.4% above our current price). If bears take charge on the weekly or we simply fall down a range we have weaker support at 254 to 232 which is 18.8% to the downside. Last week I was looking for an entry at 243 which missed by a few dollars but that could have been a +30% trade. Bummer.
In any case, RSI sitting at 50 is (neutral) and MacD is showing us gaining bullish momentum even with the extreme volatility we have seen. It is worth noting that we have a higher RSI on the weekly then we have ever had on the coinbase 1 week chart.
It seems like we will get a cross of the 12 and 26 moving averages in the next week or two and we have the 50MA coming down to meet the top of our bull flag confirmation if that happens. Everything considered I am leaning towards a bull flag confirmation because the odds favor it and we have less resistance to break then support. BUT time is on the bears side. They have had control of this until recently since December of 2017. I have a feeling the lower time frames will indicate tightening range though this week.
I also have to add a speculation statement here because it seems obvious to me. I believe people are selling their SV and going into BCH which is currently propping the price up a little.
BCH In Depth Daily: Tightening range Looking for the MA squeeze
As expected we see a tightening range on the daily inside an ascending triangle. Ascending triangles are often referred to as continuation patterns so we have we are still stacking the technical odds in favor of a bull flag confirmation. We still have PLENTY of room in the triangle though. RSI is on the high side at 67 and MacD is actually showing us that we need to slow down a bit. We have the 200MA sitting right at the 243 entry I wanted last week adding to that support. We had the 12 MA cross the 200 and the 26 MA is looking to cross it shortly is appears. Both bullish signals but look for all three of these to squeeze together. I believe this is when we will see out next definitive move.
KEEP AN EYE ON THIS. 12,26,50,200 MA may all squeeze together on the daily in the next 1-3 weeks signaling a major move is about to take place.
BCH In Depth 4hr: Possibly a trade opportunity
Honestly not seeing anything here that we have not already talked about. I will mention again that the RSI seems to like to hang around the 43 level on BCH 4 hour. We are sitting at 60. $287 might be a good entry for a short term bullish trade if RSI is around 43 at that point. It’s a strong resistance and support line but we have the bottom of our triangle to hopefully keep us from dropping lower. We also have the 200ma to support at 243 on the 4 hr. Might be a lower risk bullish trade in the next few hours.
BCH In Depth Daily: Large enough range for a quick trade.
RSI 60 and BCH seem to like 41 on the 1hr. Double top favoring a break up. We had equilibrium after the big run up then a bear break but we held support well and pushed back up into our tightening range level. If we pull back again and hold above 287 I will likely be looking for to take some small positions in anticipation of a new lower high being set as our current range from 287 to 335 is pretty large at 15+%. We shal see.
Hope you found this helpful. If you did please like and subscribe. If you want to learn and/or share your TA in a group please comment below.
All that being said let’s get into BCH for the week for April 15th 2019.
Sentiment:
Bitcoin Cash is the coin that a lot of people love to hate. There are two main reasons for this: 1. It is a contentious hard for off Bitcoin. 2. Roger Ver.
I will stay out of the crazy messy arguments surrounding these judgment calls. Feel free to comment your opinions below as I am willing to engage in constructive discussion.
We now also have the breaking BCHSV delisting from Binanace because of Crag’s behavior. Although Craig Wright is no longer associated with BCHABC directly I am almost sure the less educated masses will associate him. At the moment it appears that people may be exiting BSV and putting that into BCH. Moving on.
BCH In Depth Weekly: Bulls appear strong, but why?
On our weekly we have still have a large bull flag. Confirmation of the bull flag conveniently lines up to break the top of the gap from the BCHSV hard fork. Confirmation of this bull flag would be 41.4% to the upside but we have some pretty strong overhead resistance that has formed between 335 and 320 (16.4% above our current price). If bears take charge on the weekly or we simply fall down a range we have weaker support at 254 to 232 which is 18.8% to the downside. Last week I was looking for an entry at 243 which missed by a few dollars but that could have been a +30% trade. Bummer.
In any case, RSI sitting at 50 is (neutral) and MacD is showing us gaining bullish momentum even with the extreme volatility we have seen. It is worth noting that we have a higher RSI on the weekly then we have ever had on the coinbase 1 week chart.
It seems like we will get a cross of the 12 and 26 moving averages in the next week or two and we have the 50MA coming down to meet the top of our bull flag confirmation if that happens. Everything considered I am leaning towards a bull flag confirmation because the odds favor it and we have less resistance to break then support. BUT time is on the bears side. They have had control of this until recently since December of 2017. I have a feeling the lower time frames will indicate tightening range though this week.
I also have to add a speculation statement here because it seems obvious to me. I believe people are selling their SV and going into BCH which is currently propping the price up a little.
BCH In Depth Daily: Tightening range Looking for the MA squeeze
As expected we see a tightening range on the daily inside an ascending triangle. Ascending triangles are often referred to as continuation patterns so we have we are still stacking the technical odds in favor of a bull flag confirmation. We still have PLENTY of room in the triangle though. RSI is on the high side at 67 and MacD is actually showing us that we need to slow down a bit. We have the 200MA sitting right at the 243 entry I wanted last week adding to that support. We had the 12 MA cross the 200 and the 26 MA is looking to cross it shortly is appears. Both bullish signals but look for all three of these to squeeze together. I believe this is when we will see out next definitive move.
KEEP AN EYE ON THIS. 12,26,50,200 MA may all squeeze together on the daily in the next 1-3 weeks signaling a major move is about to take place.
BCH In Depth 4hr: Possibly a trade opportunity
Honestly not seeing anything here that we have not already talked about. I will mention again that the RSI seems to like to hang around the 43 level on BCH 4 hour. We are sitting at 60. $287 might be a good entry for a short term bullish trade if RSI is around 43 at that point. It’s a strong resistance and support line but we have the bottom of our triangle to hopefully keep us from dropping lower. We also have the 200ma to support at 243 on the 4 hr. Might be a lower risk bullish trade in the next few hours.
BCH In Depth Daily: Large enough range for a quick trade.
RSI 60 and BCH seem to like 41 on the 1hr. Double top favoring a break up. We had equilibrium after the big run up then a bear break but we held support well and pushed back up into our tightening range level. If we pull back again and hold above 287 I will likely be looking for to take some small positions in anticipation of a new lower high being set as our current range from 287 to 335 is pretty large at 15+%. We shal see.
Hope you found this helpful. If you did please like and subscribe. If you want to learn and/or share your TA in a group please comment below.
I've bought 3 BCH. 2 were fomo buy thinking we were going to break out of the triangle and one was a dip buy to bring my cost average down a little on this dip.
Two things bothering me about the setup for bulls. Daily RSI still too high in my opinion. The hourly RSI stayed oversold for too long on the dump and the recovery has been weak.
Lastly, the volume is insanely low right now as we speak on CB. Single coin buy or sell is moving the price dollars. Means the price can move very easy in either direction. Might bail out of this position if we start to break the bottom of the triangle. Need to remember we have very little support under us.