BCHUSD Bullish Scenario
BCH Market: Bullish
Max Price: ~$5000
Min Price: ~$4000
I would like to start off saying that this is my primary count for BCH, but that does not mean the only path. A good technical analyst is open to changing to alternate or new paths as more data comes into play. I would also like to say not to pay attention to the time frame. My goal is not to project a time frame but rather a potential pathway.
I have chosen this as my primary pathway because BTC is currently reaching highs that it has not seen in a while. If this is to change, then my BCHUSD pathway will switch to an alternate.
The slanted head and and shoulders forming is very bullish. It shows that sellers are running out of ammo, and that buyers can soon push the price up. Currently, the end of the right shoulder is in play, and forming an ascending right triangle (bullish).
If the head and shoulders completes above the neckline, we can see a minimum of ~2300 before a correction. This is determined by drawing a line from the neckline to the head, then placing the line at the top of the right shoulder.
Looking at our indicators we see that the MACD is forming a bull flag, and the RSI is increasing, giving a greater degree of confidence of the potential explosion upwards.
The price of $4000-$5000 is projected through a Fibonacci retracement. In terms of elliot waves, we retrace the first initial wave that we believe is in. In this case, I believe our 3rd wave can be explosive upwards, towards the 3.618 level. From there I look at support levels near key retracement levels, and lay a line out and read a price. I then take the height of the first wave, and place it on top of the 3rd wave to reach a final price of ~$5000.
This fits well into the possible cup handle formation that may be in play. The 4th correctional wave would help produce the end of the handle and get us to the $5000 range, forming a new all time high, which would correlate nicely if BTC forms new all time highs. It would also nicely "fill" the cup that could be playing out.
A cup and handle pattern is a bullish pattern that is found commonly in cryptos. Perhaps it represents a sentiment pattern that we feel towards the cryptospace. It allows an analyst to have a greater degree of confidence when spotted, as it can be justified for a greater probability of price moving upwards.
In terms of elliot waves, the 3rd wave can never be the shortest. Another possible scenario is the 3rd wave is larger then the first wave, but the 5th wave is the most extended, so it is something to think about in terms of trading frequently.
If you are a HODLer of BCH, exciting times may be ahead.
If BTCUSD pair forms new highs, expect to see it in BCH as well.
Wishing you a kuhlateral disruption of fat profits. ~Happy Trading
BCH Market: Bullish
Max Price: ~$5000
Min Price: ~$4000
I would like to start off saying that this is my primary count for BCH, but that does not mean the only path. A good technical analyst is open to changing to alternate or new paths as more data comes into play. I would also like to say not to pay attention to the time frame. My goal is not to project a time frame but rather a potential pathway.
I have chosen this as my primary pathway because BTC is currently reaching highs that it has not seen in a while. If this is to change, then my BCHUSD pathway will switch to an alternate.
The slanted head and and shoulders forming is very bullish. It shows that sellers are running out of ammo, and that buyers can soon push the price up. Currently, the end of the right shoulder is in play, and forming an ascending right triangle (bullish).
If the head and shoulders completes above the neckline, we can see a minimum of ~2300 before a correction. This is determined by drawing a line from the neckline to the head, then placing the line at the top of the right shoulder.
Looking at our indicators we see that the MACD is forming a bull flag, and the RSI is increasing, giving a greater degree of confidence of the potential explosion upwards.
The price of $4000-$5000 is projected through a Fibonacci retracement. In terms of elliot waves, we retrace the first initial wave that we believe is in. In this case, I believe our 3rd wave can be explosive upwards, towards the 3.618 level. From there I look at support levels near key retracement levels, and lay a line out and read a price. I then take the height of the first wave, and place it on top of the 3rd wave to reach a final price of ~$5000.
This fits well into the possible cup handle formation that may be in play. The 4th correctional wave would help produce the end of the handle and get us to the $5000 range, forming a new all time high, which would correlate nicely if BTC forms new all time highs. It would also nicely "fill" the cup that could be playing out.
A cup and handle pattern is a bullish pattern that is found commonly in cryptos. Perhaps it represents a sentiment pattern that we feel towards the cryptospace. It allows an analyst to have a greater degree of confidence when spotted, as it can be justified for a greater probability of price moving upwards.
In terms of elliot waves, the 3rd wave can never be the shortest. Another possible scenario is the 3rd wave is larger then the first wave, but the 5th wave is the most extended, so it is something to think about in terms of trading frequently.
If you are a HODLer of BCH, exciting times may be ahead.
If BTCUSD pair forms new highs, expect to see it in BCH as well.
Wishing you a kuhlateral disruption of fat profits. ~Happy Trading