The movement within a wedge:
Price action of Bitcoin cash is moving within a on since March 2020. At this time the price action is moved down up to the support. If we watch the indicator then it can be clearly seen that the is distributed equally between the bears and bulls. I have also placed the indicator on this pattern. And we can observe that the new dark moon is appeared above the support of the that is very positive signal. Now it will be difficult for the price action to cross down this level of dark moon. If we watch the that I have placed on the complete priceline of BCH moving within this pattern then it can be easily observed that the trader’s interest is very low below $225 and from the upside it is very low above $255. So it is showing that the priceline is moving at the level where the trader’s interest is very weak therefore the price action can move up to the resistance from here.
Formation of reversal pattern:
In previous post we have already seen that the price action of the BCH is forming the different BAT patterns with the consistency and continuity on the . First it formed a then it formed a then again price action formed a move as below:
now again the price action has formed another pattern. And at this time it is gearing up from the potential reversal zone of this new . This is BAT is a clear sign of a reversal of the price action of BCH. Now we can expect that the priceline will be moved up to the resistance of the pattern to make another attempt for the breakout.
At the support:
After the drop of March 2020 the price action bounced from the last support of $170 and broke out the next of $225. The next would be at $304. At this time the price action is moving at the support of $225 but as all signals are moving in the favor of bulls therefore this time we can expect that the price action will move up to next to make an attempt for breakout.
A very big formation:
Now I would like to take you to the monthly chart where the price action has formed a very big pattern. At this time the price action is moving in the potential reversal zone of this big . Now as per Fibonacci sequence the potential reversal zone or buying zone and area or sell zone are as below:
Potential reversal or buying zone: $242.32 to $167.94
or sell zone: $300.84 to $441.41
After watching these targets we can expect up to 160% rallyby this big pattern. But if the price action will be able to cross up 0.786 of A to D leg then the Bitcoin cash can start a very big parabolic move that can lead the priceline to achieve higher than the previous highest price ever in the history of Bitcoin cash .
From small time period to long term time period charts all patterns and indicators are turning . Therefore we can expect a reversal move from here at least up to the resistance of the pattern.
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.