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BCHUSD LONG – A Minor Correction Before Targeting 38.20% Upper Retracement
DISCLAIMER: I am not a financial advisor nor certified analyst and definitely not a pro trader. All contents discussed on this blogpost are solely my own personal views and for Trading education/entertainment purposes only. Crypto/Cryptocurrency Trading is extremely risky where losses can exceed deposits. Enter with discretion. Do your own research and due diligence. The basis of this trading analysis is purely technical in nature.
Tonight, I will be writing a fresh short term technical analysis for the fifth cryptocurrency within the Finlogix platform, the Bitcoin’s hard fork Bitcoin Cash or simple called BCH against the US dollar.
To begin with, let me give you BCHUSD’s quick price action summary. Like the Ripple XRP, BCHUSD’s long term trend is also in its 4th year bear market from its all time high record last December 2017. BCH also achieved a fresh multi-year last May 2021 while XRP’s fresh multi-year was on April 2021 but still we can see that both cryptocurrencies share the same fate. The question now is, can they both reclaim their former all time high records? BCH is still down more than 80% from its ATH at least for its October 2021 high and still long way to go. A lot of upper retracing works to be done!
Let us head now to my short term trading plan for the BCHUSD crypto pair. The main trendline resistance I am seeing is the BCH’s 38.20% Fib retracement from its fresh May 2021 multi-year high followed by the next resistance level on the 23.60%. We have witnessed a very beautiful June and July monthly lows as twin strong supports which created a bullish reversal achieving a new September 2021 local high. In fact most of the alts shared this move.
So far BCH found a good support on 471-473$ September lows then retested back the said mid month’s high 655-657$ but rejected.
At the of writing this article, BCHUSD is consolidating and just holding above the $600 crucial price level.
If I assume that BCHUSD’s daily MACD indicator will proceed for a bearish divergence followed by a breakdown from its daily RSI below 50 as well, then we can see sellers try to push the price lower up to September 29, 2021 intraday low. To prepare for another quick price correction, I am speculating that the $550 mark will act as an immediate support. This will be my BCHUSD entry for a long position and my target eyes the re-test on 38.20% retracement, that’s approximately $860.
I will set a strict stop loss at the September low but I will adjust to $450.
The overall risk:reward score for this trading plan is 3.10. All good.
Wishing again best of luck for my first ever BCHUSD Finlogix analysis.
Thanks a lot. Hope you find my article informative.
Do not forget to read my disclaimer once again. Cheers.