It looks like that we're currently at the verge of the pink trendline, the neckline of the (IH&S) pattern, and the 50 (acting as support). Heavy resistance comes from the neckline which has a slightly negative slope. While yesterday BCH was trying to break out of the $1295-$1300 range, the neckline currently needs to be beaten above the $1285-$1290 range. If BCH manages to break above the neckline, the next resistance is the pink top of the . If the pink trendline is conquered as well, BCH will have three strong supporters: the 50 , the neckline, and the top of the . Next challenge is then the . from the recent $1630 high. Another important to overcome will after that be the .5 retracement that currently converges with the 200 . In case BCH fails to break out of the and fails to break out above the neckline, then the approaching 50 could be lost as support with subsequent development.
So a lot of challenges ahead of BCH. We keep observing things closely. The day is young. BCH just woke up and she is (hopefully) full of energy. =)
*** The information provided here is no recommendation to buy or sell. It's just an idea for educational and discussion purposes. ***
We are in a key moment for BCH. I have zoomed in into the 1H chart above to have a clear picture of the battle field including the 3 described trend lines:
- 50 EMA (orange) still acting as support
- Neckline of IH&S (red dashed) being tested as support
- Top trendline of downward channel acting as resistance
In case you're trading with BCH be sure to have a good stop loss in place in case we don't manage to break resistance of the downward channel. Development over at BTC may be supportive of the breakout. We keep observing.
GO BCH, GO BCH, GO, GO, GO! =)
Volume is increasing. Price is above 50 EMA, above neckline, and above the pink trendline. Let's see whether BCH can get support above these levels.
The heavy convergence of all above mentioned trendlines looks like a messy battlefield for BCH. The neckline turns out to be a major resistance zone while the 50 EMA keeps its support alive. There is no breakout yet above the pink trendline.
Looking over at BTC it is currently forming a head & shoulders pattern on the 15 mins and 30 mins chart. This could temporarily lead to a price decline to around $11.150. By taking the current BCH/BTC price of 0.111 into account, this could lead to a decline of BCH price to $1.240 or further below. The 50 EMA could then be lost as support with further temporary declines. So be careful when trading and consider a buy back at a lower price.