Hey dear friends, hope you are well and welcome to the new update on Bitcoin Cash (BCH).
Reached the resistance of falling wedge:
On the daily timeframe chart, after the drop, the price action has started moving in the falling wedge pattern. As we know among the trader's community, this pattern is considered a bullish reversal pattern. Most of the time, the price action breaks out the resistance of this pattern.
At this time, the price action is trying to break out this resistance.
Big Shark move:
On the 4-day chart, the price action of BCH has formed a bullish shark pattern. Priceline has already visited the oversold zone as it was dropped up to $468 and moved up. However, if the 50 simple moving average will be broken down, then it can give us another chance to catch it from the buying zone of this pattern. There is also 100 simple moving average support in the potential reversal zone.
Broadening formation:
BCH has formed the broadening formation on the weekly timeframe chart. We can observe that the price action at this time, is at the support of the broadening formation. Whenever it is getting bounced by the support, it is forming the higher highs. Therefore, once the price action will be bounced again, we can expect another higher high.
Conclusion:
Even though the price action of Bitcoin Cash has formed a big bullish Shark pattern but once the price action will start a bullish divergence, then it may cross the sell targets of this pattern and form higher than the previous high.
For more harmonic trading ideas you can join:
https://www.patreon.com/moon333
Link for Binance exchange, the best place to buy or sell Crypto: