The Daily tf of Bitcoin Cash (BCHUSD) is shown here using a log scale. Trendlines that are important to monitoring the development of price action and the ADX (average directional index) are discussed below in an ascending order.
(1) This is the more recent bearish trendline (blue) for Bitcoin Cash (BCHUSD). The most conservative entry into a long (buy) position would wait for price action to close again above this trendline that is confirmed by an indicator(s).
(2) Current bearish price channel for Bitcoin Cash (BCHUSD) that commenced on May 7, 2018. Further bearish (sell) move in Bitcoin Cash (BCHUSD) would be expected to find the bottom of the channel which is ~ $508.70. This region does coincide with the support region that is discussed next.
(3) The region between ~$598.00 and $512.40 has been marked in this analysis as the support region for Bitcoin Cash (BCHUSD). Price close below the support region implies the possibility of more selling to ~$290 area.
(4) This is the major trendline for BitCoin Cash since its inception (black color). As indicated on the chart, price action closed below the trendline on June 22, 2018. This is bearish and could lead to more selling. What is also important to take note of is that the close below the trendline is captured in the bear channel i.e. (2) above. Both chart patterns do favor a bearish bias.
A safer point of trade entry for a bullish trade would have to wait to price to move above this trendline and out of the bear channel that is confirmed by an indicator(s); a strategy that would be considered less conservative than going long above the major bearish trendline i.e. (1).
(5) ADX shown below with the ADX line in black color, -DI in red and +DI in green. ADX line with a positive rising slope and –DI above +DI clearly indicates that a trend does exist and it belongs to Bitcoin Cash bears.
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