Short
Bitcoin Cash (BCH/BTC) Could Extend The Sell-Off
Timeframe: 240M
Main Scenario: The crypto pair could resume the downside movement only if it will slip and close below the 0.09985 former low. BCH/BTC has increased significantly in the last hours and it is pressuring a dynamic resistance and maybe it will retest other upside obstacles before will drop again. Right now will be better to stay away and wait for a confirmation that the rate will drop again on the short term.
Alternative Scenario: Price could stabilize above the median line (ML) and could fail to make a valid breakdown below the inside sliding line (SL), this situation could send the rate higher in the upcoming period.
Entry/Stop Loss/ Take Profit: We can go short on this crypto pair if the rate it will make a valid breakdown below the SL and if it will close below the 0.09985 former low. The Stop Loss can be placed somewhere at the 1.10925 level and the Take Profit right above the downside 50% Fibonacci line of the major descending pitchfork, somewhere at 0.07954 level.
Duration: One Week (5-7 days)
Consolidation/Ratification level: If the rate will drop again from here, then you can drag the Stop Loss right above the today's high.
Warning Level: A further drop will be invalidated if the rate will make another false breakdown below the SL or if it will fail to reach it.
Risk Management: Risk/Reward Ratio: 2.01. You can register a nice profit if the rate will validate our setup.
Main Scenario: The crypto pair could resume the downside movement only if it will slip and close below the 0.09985 former low. BCH/BTC has increased significantly in the last hours and it is pressuring a dynamic resistance and maybe it will retest other upside obstacles before will drop again. Right now will be better to stay away and wait for a confirmation that the rate will drop again on the short term.
Alternative Scenario: Price could stabilize above the median line (ML) and could fail to make a valid breakdown below the inside sliding line (SL), this situation could send the rate higher in the upcoming period.
Entry/Stop Loss/ Take Profit: We can go short on this crypto pair if the rate it will make a valid breakdown below the SL and if it will close below the 0.09985 former low. The Stop Loss can be placed somewhere at the 1.10925 level and the Take Profit right above the downside 50% Fibonacci line of the major descending pitchfork, somewhere at 0.07954 level.
Duration: One Week (5-7 days)
Consolidation/Ratification level: If the rate will drop again from here, then you can drag the Stop Loss right above the today's high.
Warning Level: A further drop will be invalidated if the rate will make another false breakdown below the SL or if it will fail to reach it.
Risk Management: Risk/Reward Ratio: 2.01. You can register a nice profit if the rate will validate our setup.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.