Summary:
Bitcoin Cash has been in correction phase for quite a while now and looks like the downward trend has completed. We had an inverted H&S pattern formed on 4 hr chart which reach is conservative target i.e 50% fib extension. Right now price is hanging around full swing 50% fib waiting for a push from volume to make higher highs.
Trend Analysis:
After the 4000 highs BCH has been in correction for almost 2 months now. If we draw Elliot waves, looks like the correction is complete and recent swing gives us the confidence to think so.
Another reason that support the trend reversal is the full swing downside target has been reached in 1st week of February. which was coming off of 61% fib. FYI I do not include ALL the wicks in my fib drawings because I feel like those are just over shoots of the targets. My fib ends are usually Support and Resistance levels
Next move:
Looking at the recent swing from 756 low to 1550ish highs (by the which is major resistance), price has come down to 50% fib level and started to consolidated at this level for almost 2 weeks now. Volume has been on the lower side and MACD is neutral. The upside target looks to be 1900ish level if we break the major resistance at 1600ish level.
This could take few weeks to months to happen.
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Disclaimer:
I am not a financial advisor, nor the information posted in this article is a financial advice. The information in this article is my personal opinion and is not recommended to make any investment transactions based on it. I do not take any responsibility for the investments made based on my analysis.
