It’s the same script we are reading and it’s actually a reprieve for BCH buyers to see prices recover.
Overly, prices are on an upward trend and like most alt coins, the correction has seen BCH lose more than 80% of its value. That’s dire but after last week’s bullish candlestick printing out right at the middle BB, holders can be encouraged.
Of course, nothing can be interpreted from the weekly chart unless maybe there is a strong correction pas key resistance levels or sellers see the current prices as the perfect entry point as they load their shorts.
Now, before we even think of going long, BCH prices need to close above the middle BB and if they surge past $1450, we can stay tight and wait for a correction back to $1400 and enter.
Otherwise, if it remains this way and the middle BB continues acting as resistance, then we shall refer to week ending February 3 candlestick, consider it a break out and trade accordingly.
It’s the $750 range where BCH price action is oscillating at that is under my focus. This zone is marked by the 61.8% and the 78.6% Fibonacci retracement levels anchored at the all time high-low of this crypto.
Momentum is actually positive but since it is shown by a lagging stochastics indicator, we can only be sure of bullish pressure if we see a push and close above the middle BB which is acting as our immediate resistance.
It’s actually the same set up as most altcoins pairs, right? That’s what we are waiting for, if that happens and prices close say at $1450, scalpers can spread out their longs and target $1700.
Our trading is extremely simple and besides the middle BB in the daily chart, the minor resistance trend line connecting January 20, 29 and February 10 highs here in the 4HR chart is our perfect trigger line.
If there is bullish pressure build up and prices break away from the minor middle BB and this line then we have no option but buy. On the same vein, any reaction at this price tag and it is likely that prices might correct and immediate support might be found at $1100-the most recent low.