Bitcoin Cash BCH H&S and Bullish Wedge

After the big and strong high volume rally BCH' has made, the bull flag i suggested in the previous analysis failed completely, it actually never even made the first leg up so there was not even a bull flag to be seen. Volume is still high on BCH' as well. The whole market is anticipating on the hard fork of BCH', as always a lot of speculation going on about this and a million different scenario's and opinions are being told. Best advice that i can give about this is, ignore it completely. The current market is not the same as a year ago, people are better informed nowadays. So just let the chart and it's patterns tell you what the market is thinking.

The long term bottom formation is still in play for BCH', the one i started to show in September and 2 weeks ago at the start of the big rally. This long term picture is still in full play, despite the weakness of the past few days. On the bigger picture it's just another correction on the big rally it made. Mostly because Bitcoin' has failed another attempt to break upwards because of the low volume.

This time i have added this potential inverse H&S in the long term picture. Here we have the same story as for XRP' (read it to know more). We want to see buyers stepping in around that blue support zone. If they do and we start to go up again, we need to see a big strong and high volume move up again towards the neckline. Like we saw during the rally from 450 to 640. If we see that develop, there will be a very big chance for a move towards that 850/900 target. That would mean we need Bitcoin' to break the 6500 resistance once again and go above the 7000 to reach those levels.

Short term, we can see another possible bear flag. Support seems to have been broken already so we can expect a bit more downwards movement. I am not so sure about the bear flag, so i have drawn 2 scenario's here. Yellow circle shows the target of the bear flag, but for the bullish version i want to see the blue line develop. Meaning, if we drop from here that the green support zone around 510/530 holds. I showed this support zone a few days ago and so far it is still holding. If this support zone breaks with high volume (as the past few days) we have to assume we will move towards the next support around 450.



Please don't forget to like this if you appreciate it:)


Previous analysis:

And the two long term analysis on BCH'

Comment:

BCH dropped as expected and the question now is if the low is set or that we are dropping towards that yellow triangle. Bitcoin dropped more than i wanted it to do, but so far the bounce up has been good. So we are not out of the clear yet but things are improving a bit.

I have scaled in a small % of my now and going to sit and wait to see how things go, if it fails it will be a small loss and up to the next trade, no emotional attachment! More updates on this will not be shown here.

Comment:

We dropped below the green support zone even though Bitcoin moved sideways, but it moved up just as fast again with even more volume. That red resistance (of the bear flag) has once again been to heavy and got rejected. There is potential for a small inverse H&S, but from my experience, the right shoulder dropped too much, which makes it more likely that i will fail.

What i am trying to say is, many times i take risks entering in the right shoulder, but NOT with this one. Want to see it move up first before thinking about entering it.

Comment:

Even though Bitcoin made quite the drop today, BCH stayed quite stable and making a small bounce up now. This could indicate BCH bulls might still try to make this small inverse H&S happen. But volume is very low, which makes it unreliable. When seeing volume increasing and the price moves up? Than the chances will increase a lot