It's been a while since there's been an opportunity for a long trade on Bitcoin Cash , in terms of what's safe and responsible to call at least.
Looks like we've found that situation.
BCH has diverged from BTC primarily because the BCHBTC pair has finally broken out above 0.18, MMs have absorbed the dumps, and have continued to push price up.
BCHUSD price has followed in kind.
This trade is best traded on a 6H candle closing above the line at $2,550
That being said, it may move too fast for that, so I recommend taking a 50% sizing of your normal trading position now and filling the rest on a minimum of a 1H close over $2,600.
Target will be the 0.236 Fib at $3,500 and the prior high at $4,000.
However, if price action reaches these goals we will have to reconsider at the time.
STOP should be strictly adhered to at $2,300 to account for pullback.
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Pullback was in the area we anticipated. BCHUSD looks very strong in a market that is somewhat chaotic with the accompanying BTC pump.
I discuss that in the new update as well.
This is a more difficult spot to trade, in general. There is lots of risk of bear trap, bull trap, and fakeouts. We use patience and controlled risk to navigate better spots and hope our stops hold up.
Patience is key.
There is now greater risk of a pullback, in my opinion, and so stops should be adjusted accordingly.
Price now dips beneath the meanline from $300. We'll see how the situation develops over the next 12-24 hours.
On the 15m candles it's an ugly giant Head and Shoulders formation.
If price action can regain $2,450 with momentum we should have confirmation of another run.
Long trades should not be entered until this is achieved, however.
I feel this is a difficult spot to day trade, but in terms of trading on longer time frames you're actually amidst an opportunity to accumulate.
Curious, isn't it?