Wedge formation and are giving signals:
Now on the the price action of Bitcoin cash is moving in a since March 2020. The Bitcoin cash has several touches at the support and the price action has also made several attempts for the breakout. But so far the BCH is not able to break out the resistance of this . Here I have placed the indicator. On upside you can watch the and on the downside the dark moon can be seen. The distance between one to another and from one dark moon to other dark moon is called synodic cycle that is 29.5 days long. Now after the completion of the recent synodic cycle we can see that the new was appeared down than the previous . And the new is inside the below the resistance. And the recent dark moon was appeared below the support and it down than the previous dark moon. So here the indicator is giving the signal and indicating that the price action might be moved down from here. Moreover I've also placed indicator and we can see that the upper bands of the is below the resistance of the pattern and the price action is not able to cross up the resistance of and can start another downward move up to the suppor. here I have also implemented the indicator on the complete price action moving within this pattern that is showing that trader’s interest is strong up to the support that is around $225. Therefore a possible move up to the support is expected. However we take a look at indicator then even though there is not a big but buying is being appeared with the continuity and consistently, therefore the buying can cancel these signals.
Now if we take a look at the indicator then it can be clearly observed that the is equally distributed between the bears and bulls. On the chart there are 6 obvious downward moves and 6 openly upward moves by this indicator. And the price action is also following the moves of the . At this time this indicator has made its 6th upward move and the price action has reached at the resistance. Therefore we can expect the seventh downward move by this indicators.
Consistent formation of BATs:
Now let me show you the formation of different BATs with the continuity. On the the price action of BCH has completed the formation of third and it is forming these consistently. Let’s dig these patterns out to watch the how perfectly they are formed:
After initial leg the A to B leg is retraced between 0.382 to 0.50 Fibonacci. And B to C leg is projected between 0.382 to 0.886 Fib projection of A to B leg. And the final leg has been retraced between 0.786 to 0.886 level. And all these BATs has followed the same Fib sequence. Therefore after the completion of third pattern we can expect a downward move from here.
Simple moving averages and resistance of 200 SMA:
Now if we watch the simple moving averages with the time period of 25, 50, 100 and 200 then the price action has crossed up all the moving averages. But only 200 is left to crossed up and if we take a closer look on the chart then it can be easily observed that since April 2020 the price action has made several attempts to break out this but so far it is unsuccessful. And at this time the priceline of BCH is struggling at this 200 again. However this time the priceline of Bitcoin cash has the support of 100 , therefore if price action will be dropped from here then it may re-test the 100 as a support before any other move to the upside.
I the month of Feb 2020 the price action was very strong and reached very close to the key level resistance of $500 but unfortunately after reaching at $497 a strong was started that leaded the priceline to the first support at $147. After getting bounced from this the priceline of BCH broke out the next resistance of $220 and re-tested the previous resistances as support and moved up to breakout the next resistance at $260. So far it is moving between these levels between $220 and $260 and now it has formed a between these levels. Once the price action will breakout this resistance then it can go to the next resistance at $304 and after breaking out $304 the next resistance would be at $355 and in case of breaking out this hurdle the key level resistance would be at$ 500. If the priceline will breakout $500 then it can reach the highest right ever in the history of Bitcoin cash very soon.
Ichimoku cloud and directional movement:
On the long-term weekly chart the Bitcoin cash is never able to cross up the since this cloud is appeared in the history of BCH as per coinbase exchange. We have witnessed several attempts since may 2019 to break out this cloud but unfortunately so far the price action is moving below the cloud. This time the cloud is turned very weak and the lagging span of the is crossing up the . This is the first signal that we have received now we can wait for the conversion line to cross up the baseline. And once it will be happened then the will be turn and it will be easy for the priceline to breakout this cloud and breaking out this cloud will become a very strong support for the price line of Bitcoin cash to start a very long term rally.
If we take a look at indicator then positive directional indicator has crossed up the negative direction indicator. That is the signal indicating that on the long-term the Bitcoin cash can started a rally. Before this in April 2019 when the positive directional indicator crossed up the negative directional indicators then Bitcoin cash produced 330 % rally. And after that in January 2020 when again crossed up the –DI then the price action of Bitcoin cash started a rally up to 138%. Now the wait is only for the to move up to assign the power to the bulls.
Big a firm signal for long term move soon:
Now I would like to recall a very big pattern that is formed on the monthly chart by the price action of Bitcoin cash . I also a posted this pattern in my previous post as well. After entering in the potential reversal zone now the price action is moving just above this PRZ level and it can start movement to the upside very soon. This can be very helpful for the priceline to start a long term move.
On the the signals are more than the signals. Therefore we can expect a correction rally up to the support of the that has been formed on the . But on the long-term chart the Bitcoin cash is turning very strong specially after the completion of very big pattern on the monthly chart. So the countdown for a very big upward move has begun.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.