We have seen 4 waves since the introduction of huge volume into BCH. The price has not only broken through a significant trend line of this recent wave, but also broken below the 100 hour moving average. At this moment, volume is much lower than it was when the price was going crazy, which leads me to believe that this short term bull run is slowing down, but we still may see one more wave come into play.
In this case, I see three possible supports: $560-570 range as it was a resistance on 11/02 and also a support on 11/03 and 11/04; the $500-$420 zone as this is where price hovered in the last period of low volume; and lastly it could bounce anytime positive news is released about bitcoin cash and/or negative news about bitcoin/segwit2x.
I have an order to sell at $570 once the breakthrough of the moving average has been confirmed, and I will look to enter again somewhere in the zones I have highlighted. I will try my best to continue to update with new price action, and leave a comment if you have any questions.
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Here is a trend line that will either launch us into wave 5, or continue sideways momentum until some sort of news or volume increase propels us forwards.
I have added to my holdings at $570 and will keep a further eye out.
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Look to my most recent post in which I identified a bearish descending triangle, I have moved my price target for a buy lower than $570
Thanks!. What is your long term projection? How far will the 5th wave go
Havier
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@imkeshav, Only time will tell my friend! The newfound interest in Bitcoin cash is most likely because of people's insecurities with the future of bitcoin after the 2x hardfork. Theres a chance that bitcoin legacy stays prominent, theres a chance 2x becomes the new bitcoin, and of course—what we are hoping for here—theres a chance that bitcoin cash overtakes the both of them. Keep an eye on the futures price of segwit2x on coinmarketcap and the mining power that still supports segwit2x to get an estimation of what side most people are on at the moment, but only the markets can say which will win in the end.