Hey traders! This week I'm going to analyze bitcoin cash.
Lately most of the coins have been following the bearish sentiment of bitcoin as bitcoin continues to play a major role in the market.
Bitcoin cash is showing bearish sentiment and has seen a considerable drop in social volume Seemingly people are not finding it as attractive an investment at the moment. Less social volume = Price drops. History shows that social volume in the market correlates highly with price movement, as seen in the image above.
The market shows a bullish regular divergence which indicates a possible bullish reversal.
A bullish regular divergence can be identified when the price makes lower lows and an oscillator does higher low. This often occurs at the end of a downtrend. The price has stopped in the middle of the support zone and has almost fully retraced back to the lows of November. This is an ideal zone to watch for possible reversals.
Bitcoin cash needs to break above $711 to show a bullish confirmation and needs to break $891 to show a bullish breakout (Daily pivot level). If you are considering buying at these levels in a longer term, then it's better to start accumulating slowly and start taking minor positions over time.
Trading Information:
Buy: The breakout of $891 or the retest of breakout.
Or start accumulate slowly and small positions.
Profit Targets: $1151 / $1299
Some of the position should be left for the longer run.
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CONCLUSION:
Why I find it attractive is because it's low price and upside potential.
When the sentiment is dead, it's a great time to be a contrarian.
DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing anything.
Writer do not have position in this trade and is not Bitcoin Cash supporter.
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