BCH on the 4Hr Observation and Frustration! Jan 12
As you can see from the chart the 4-Hr has developed a rounded bottom. In a perfect world, we can predict future price action to go higher by doubling the width of the semi-circle for a short-term price prediction of around $147.xx. And, of course, we could just trade right thru the semi-circle for more consolidation! In this crypto game, anything is possible, and no one can predict how low we will go on BCH if BTC decides it wants to make a hard move lower and the other alt-coins follow suit. I have included a reasonable stop-loss area for consideration if you're thinking about entering a trade at these levels. I am not entering a trade at these levels. I got in BCH a bit after the run and was got out during the retracement for a small loss.
Outlook: Neutral. There is no defined trend on the 4-Hr other than a fully formed rounded bottom. Anything could cause the price action to just collapse to the .786 Fib level ($115.53) and possibly lower. The downward solid yellow trend is a reference as it takes 3 defined points to confirm a trend. If you notice in my analysis above if price and time play out as statistically predicted the price runs right into the downward leg of the solid trendline. I AM NOT A BUYER. Volatility is shrinking and we could explode in either direction; take profits if you can on the way up keeping a little on the table for growth potential. Please note price and time are correlated to the 4-hour timeframe and only forward-looking a few days. A daily or weekly analysis is better for long term trading, but we are trying to swing trade this dog with short term goals of %20+ profits in a few weeks time.
Best,
Biff
Outlook: Neutral. There is no defined trend on the 4-Hr other than a fully formed rounded bottom. Anything could cause the price action to just collapse to the .786 Fib level ($115.53) and possibly lower. The downward solid yellow trend is a reference as it takes 3 defined points to confirm a trend. If you notice in my analysis above if price and time play out as statistically predicted the price runs right into the downward leg of the solid trendline. I AM NOT A BUYER. Volatility is shrinking and we could explode in either direction; take profits if you can on the way up keeping a little on the table for growth potential. Please note price and time are correlated to the 4-hour timeframe and only forward-looking a few days. A daily or weekly analysis is better for long term trading, but we are trying to swing trade this dog with short term goals of %20+ profits in a few weeks time.
Best,
Biff
Comment:
BTC bringing down the entire crypto market in a panic sell! Will the .786 level hold? I am not a buyer. I am waiting to see how this pans out!
