BCH cut through support zones pretty easily on the way down breaking the strong $480 zone but bounced off $410. Compared to other altcoins we've seen in other charts, BCH did not bounce as strongly with volume from support so one must watch a retest of that support level and it must hold with volume for us to be certain that we could be seeing a short-term bottom.
As I am writing, we can observe that BCH is currently forming a tweezer top, which would be a very bearish sign and a retest or break of the lows could be on the cards (granted there is still 2 hours until the candle closes).
The RSI and MACD have seen some movement higher on this move but nothing enthusiastic so far, showing that there still is some weakness and buyers aren't fully convinced of this move. If BTC does turn around here and head lower, we can see BCH breakdown from the level it bounced off and head for $300.
A significant break and close above $490 could see a move to $535.
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Comment
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BCH hit the supply zone above perfectly and formed a tweezer top on the 4H, which is a bearish formation and continues to pullback. We are currently resting on support but we could see a move lower into the $420 area where we expect to see some defense played by the bulls.
that looks like a perfect V bottom in the works in my opinion. i would not be short until we take out old lows (410)
CM_Trades
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@aceman0920, yes we do have a V-bottom like pattern but the volume isn't there in my opinion. Unless we get a break above that resistance with substantially more volume, I see this as being a bounce before a return lower. Time will tell of course and if BTC does decide to make a move higher into the 6700 range then BCH will continue higher. Appreciate your input!
skylord66
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Looks great..Thanks..
CM_Trades
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@skylord66, thanks for the feedback! Would love to hear your thoughts on BCH or any of our other posts!
skylord66
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I'm still learning how to analyze..during this time watching others and how they predict the market..so I'm only trading BCH during this learning process..once I master certain features, I will try other coins..
I'm actually not interested in how high or low it;'s gonna be this week..more like how and why it's going up or down on daily or weekly basis..I appreciate any info with details..Thanks..
CM_Trades
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@skylord66, Yes, taking your time, learning, and gathering all the information before entering a trade is key! I try to describe the charts on a longer-term basis using the 4H chart to give viewers higher timeframe views on the market. If you ever have any questions, please don't hesitate to comment on any of our posts!