My BITCOINCASH Trading Strategy

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Written by

Fond of Blockchain and Decentralized Ecosystem.

3 years ago

Topics: BCH

Bitcoin Cash:

Bitcoin cash is the fork of Bitcoin in case If you aren’t aware of it. The coin has been one of the leading coins in the crypto market with a motto of P2P E-Cash.

Current Market Situation:

Before looking for any altcoins, we have to look at the BTC Position. I see many of the people were panicking during yesterday's market correction. Yes, it is nothing more than the correction and Btc has already been in a good position coming back to the 52K level and the major thing is the BTC Dominance, total % of Btc Market Cap in the total market cap of the crypto industry, has been falling and it is around 50-55. It clearly refers that people are jumping out their money in the altcoins and shifting their money from the BTC to altcoins. There is a cycle of money flow in the bull market which you can see below:

Bitcoin-- HighCap Alts---MidCap Alts----LowCap Alts

Current Situation Of Bitcoin Cash:

Bitcoin Cash (BCH) has made the ATH of 4000$ in the 2017 Bull market which is insane and all those who have entered the BCH have made an insane amount of profit. If we look at the current price of the BCH, It has already touched the 1200$ and the best thing is that Bitcoin Cash has entered into the bullish zone after being in the accumulation zone for a long period of time which is a great indication of taking our entry for getting the best profit.

Source-https://s3.tradingview.com/snapshots/l/lQh2KYvj.png

Risk VS Reward?

Before taking any position in any trade. The first thing that we should look into is Reward Vs Profit Ratio. Just like the name suggest Reward Vs Profit Ratio means how high the price could go vs how low the price can go in simple language. Also, we can say if we are at the peak level and still the bull market is ongoing then the risk would be much higher and reward would be much lower. You can calculate the same thing using the ratio for ease. The below picture shows the best explanation:

LOW RISK HIGH REWARD

HIGH RISK LOW REWARD

For Bitcoin Cash, we are only 79%% up from the local peak it had made several times in the bear market so we can take that level as the risk. For instance, In October 2018, June 2019, Feb 2020 the Bitcoin cash has made the local peak of 500$ and if we look at the current price 800$-830$ (At the time of the start of creating this post and end), the coin hasn’t made anything bigger like other coins. Even if we touch the ATH, there is a good chance of big profit for holders.

WHY I AM SO BULLISH ON BITCOIN CASH?

Let me present you one by one:

The current price of Bitcoin Cash is nowhere near the ATH of its previous cycle.
After 1000Days of being in the ACCUMULATION ZONE, the price has broken out of the accumulation zone and is further confirmed by a re-test.
Relatively Small Risk and Big Reward Opportunity.
Solid Fundamentals with a great team behind.
Bullish Cross over on MA-50 and MA-14.
Most of the Altcoins, crossing their ATH and the money flow may start any time.
Liquidity is insanely increasing in the overall crypto market.
FOMO in Retail Investors.
BCH/BTC pair has a 1000% Reward with almost no risk at all.

My TARGETS AND PROFIT TAKING STRATEGY?

T1-1700:

It would be the first target because from this level we had seen the resistance last time. And I would be selling only 20% of my total holdings which I had bought earlier in the dip of the bear market with around 600% gain from 300$.

T2-4000:

It would be the second target because we will see a major sell-off at this level being Previous ATH. At this level, I will sell my 30% of total holdings.

By this time, I would have already got my Invested amount return with good profit and I would let my profit rise without any worries about the market direction with the dynamic stop loss.