While writing my article yesterday morning, I noticed the price of BCH I have in my wallet kept on dipping, and by evening, it has dipped by over 14%.
I have some BCH in binance I wanted to convert to fiat so I can finally register for a course in school (just $11).
I told my friend (Gift) that now seems like a good time to sell because I suspected it will dip very soon and then he said "what if it goes even higher?"
I thought about that but at the moment I seriously need money to register for the course, so I decided to just sell the BCH but I will do it later.
Later on, I logged into binance and noticed the $11 has now become $9. I was actually not gonna sell anymore because I have gotten money from somewhere else.
I wondered what was going on so I checked the BCH/USDT market on Binance. Turns out BCH is on its way to a downtrend, but I didn't study the chart further because I was busy in school.
Crypto-forex knowledge
My crypto knowledge is not so good, but I have a fairly good knowledge of forex and I figured they are mostly similar in terms of analysis.
Some of my friends that are good in forex and crypto will always say that cryptocurrency is a lot more volatile and you will hardly see forex currency pairs (especially the majors) acting crazy.
They might be right. I know that forex is not very volatile, especially when you're dealing with the majors.
I remembered witnessing an argument in a whatsapp group last year between forex and crypto traders on which trade is better. Both parties gave some pretty good points, especially about the risks, volatility, and beginner-friendliness.
Then someone mentioned that cryptocurrency can easily be manipulated by whales and sharks, but that's not so easy in forex.
Both sides agreed, but one of the crypto traders said other cryptocurrencies can be manipulated but bitcoin has gone past that stage. He might be right though.
I got involved in crypto from time to time and I noticed that some of the techniques I used back then also worked. I didn't actually do any trading but the tools for technical analysis are basically the same.
Bch going downstream
I checked the BCH/USDT market again later at night and it was still going down. I was using the 15 minutes and 4 hours chart, so I decided to switch to the 1 day chart.
I noticed a very big bearish candle that looked like a bearish engulfing. A bearish engulfing pattern signifies the end of an uptrend and shows that price will start getting low.
I slept off at that point and I woke up at about 4am. As usual I opened readcash first and I noticed the price of the BCH in my wallet has increased by over 29%!
I was very happy that BCH has made a comeback and is going higher. But I suspected something isn't right (I remembered the bearish candle), so I decided to check my notification, that's when I saw that the increase was caused by rusty, he visited some of my previous articles and tipped them 😅
I wondered how BCH was faring so I went to binance to check out the market.
My prediction was right and another bearish candlestick has started forming for today. It will probably continue that way for a couple of days this week (or maybe the entire week) and then the law of price action will set in (I hope it also works that way in crypto trade 😆).
I closed the chart and got ready for school. While in school, I continued monitoring the market and as usual, it was red. I was curious about how other coins were doing so I check them using trust wallet.
Well, most of them were also having their day of red. BTC, ETH, BNB, and most altcoins were red, so I guess BCH followed suit, probably due to FOMO 😂
I got home later in the evening after a very heavy rain. I was pretty hungry so I quickly cooked spaghetti.
After eating, I opened up binance again to look at the BCH market. The candle for today is looking very small so I'm hoping this downtrend ends very soon.
There's likely gonna be another bearish candle tomorrow, but maybe not as big as yesterday. But I know prices will go up again (probably next week) and I will probably no longer monitor the market again since I'm no longer selling.
My forex knowledge has really helped me to safely sail through the ocean of crypto (at least to some extent). I remember learning every day from babypips, but I seem to have forgotten most of the things I learned (it has been over 3 years since I stopped forex trading).
Observing the BCH/USDT market over the past few days has been fun and reminded me of my forex experience. I will still check out the BCH chart when I am not busy and I even plan on adding some other coins to my monitoring kit 😁
Thanks for reading 💗💗💗
September 8th, 2021
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