Bitcoin Cash - The Train is Leaving the Station; Entry Points
Bitcoin Cash has broken the major historical downtrend line convincingly and has come to its first major resistance point, $400. It looks like we're forming a classic cup and handle pattern which is often characterized by some price discovery, taking profits, selling off, before breaking upwards, retesting resistance, and breaking out.
All of this is pretty normal and a very healthy pattern. If you are looking to enter, sweet zones will be in the $367 and $345 range with next target being the 1.618 fib uptrace, which conveniently aligns with a prior resistance point.
Charted entry is based on being able to get $340ish. Adjust appropriately if you enter in the $360s. Ideally on this you'd only want to stop out if it falls back through the major downtrend line convincingly. I think chances of that happening with the November drama coming is very slim since I believe Cash's major players and the large movers that have been accumulating will want Bitcoin Cash to be bullish so it can contend for the title, and in such a vastly oversold market, they're definitely in control.
Enter: ~$340
Stop: $295
Target: $460
Risk-to-Reward: 2.54
All of this is pretty normal and a very healthy pattern. If you are looking to enter, sweet zones will be in the $367 and $345 range with next target being the 1.618 fib uptrace, which conveniently aligns with a prior resistance point.
Charted entry is based on being able to get $340ish. Adjust appropriately if you enter in the $360s. Ideally on this you'd only want to stop out if it falls back through the major downtrend line convincingly. I think chances of that happening with the November drama coming is very slim since I believe Cash's major players and the large movers that have been accumulating will want Bitcoin Cash to be bullish so it can contend for the title, and in such a vastly oversold market, they're definitely in control.
Enter: ~$340
Stop: $295
Target: $460
Risk-to-Reward: 2.54
It also shows why analysis is great, but it's always important to adjust dynamically to real world market conditions.
Right now I'm thinking the target is still the same at ~$467 and so one can safely enter above $400. Long trades are most certainly trading with the trend right now.