Hi friends hope you are well and welcome to the new update on bitcoin cash in today's will will try to find out the different and signals and patterns. First of all I would like to take you to the where we have the different levels and if we take a look back in the month of March 2020 then we can see that after the waterfall crash the priceline has hit at the support at $147. And from this support the priceline recovered and broke out the $200 resistance again. And after breaking out the 200 it has re-tested the previous resistance as support and moved up to break out the next at $260.But here we have some critical situation cause after a hard attempt for breakout in April 2020 the priceline dropped down again and moved up to re-attempt for the breakout from $260 . But again the price action is dropping down. So if this drop will be continued then we will have a formation that can produce more strong rally to the downside.
The priceline is being rejected by the SMAs:
Now if we take a look at the different simple moving averages with the time petiod of 25, 50, 100 and 200 on the same then it can be easily observed that first priceline broke out the 25 and 50 simple moving averages but when the price action attempted to break out the 200 then it is rejected by the 200 . The 200 is almost at the same level where we have the $260 priceline resistance. So the priceline is being rejected at the same time by the $260 priceline and the 200 as wel. And the Bitcoin cash is forming a formation on the chart of the moving averages as wel. Now it can be easy for the price action of Bitcoin cash to break down the 25 and 50 supports. Because the pressure from the upside is stronger than the pressure from the downside. As we have bigger moving averages above the price action and those are 100 in 200 SMAs and smaller moving averages below the priceline and those are 25 and 50 simple moving averages.
Priceline could not reach the resistance of up channel:
The BCH has also formed an on the but this time the Bitcoin cash could not reach up to the resistance of this . If the price action will break down the support of 25 and 50 simple moving averages then it can also break down the support of this channel as well . Because we have the 25 at the same level where we have the support of this and in case of breaking down the support of the channel the priceline can easily reach at the support of $200.
The move on long term chart:
Now I would like to take you to the very long term monthly chart and here we have a very positive move by the price action of Bitcoin cash . And that is the priceline of BCH has formed a very big pattern same as like the Bitcoin has formed on the monthly chart. Even though the price action has spiked beyond the support of the potential reversal zone of this pattern. But within very next cande stick it has been retraced back in the potential reversal zone. Therefore we can ignore the extra spike.
Here I would like to recall a move of the Bitcoin cash that I posted on the 19th of March 2020 in my previous article. This was the pattern that helped the priceline to re-enter in the potential reversal zone of the big pattern that has been formed on the monthly chart. As we can see that after entering in the buying zone of the pattern on the 4 day chart the BCH took a powerful that produced more than 102 percent profit. Now from the buying zone of the pattern we can expect up to 163% profit spike. So if you want to take it as a single trade then you can buy it within the potential reversal zone of this big and sell it within the or sell area as I have defined on the chart but in this case you should make your stop-loss the potential reversal zone that is up to $168.
But if you want to hold it for the long term then you need to watch out for the breakout from the different resistance levels as we have discussed on the short-term . And if you are looking for that Bitcoincash achieve the highest price ever in its history then we need to watch out for the breakout from $500 . That is the strongest key level resistance for the Bitcoin cash .
Bullish on 4 day chart:
Now I would like to take you to the weekly chart where long term signal can be appeared in the future by the . As we can see that so far the price action of Bitcoin cash is not able to cross up the cloud. Once in the month of February 2020 the price action crossed up this cloud but during re-testing the cloud resistance as a support it was filled and drop down again. Once the priceline of Bitcoin cash will be able to cross up the ichi moku cloud successfully then the Bitcoin cash can turn on the long-term for the next 2 or 3 years.
If the price action will be not able to break out the next resistance levels on the daily time period chart. then we can witness further downside rally. But on the long-term the Bitcoin cash has formed is very big patterns therefore on the long-term it is .
Note: This idea is education purpose only and not intended to be investment advise, please seek a duly licensed professional and do you own research before any investment.