Down channel:
On the daily time frame since the month of May 2021 the price action of Bitcoin cash is moving in down the channel. After hitting the support of this down channel on 22nd June the price line reached the resistance and for the past several days, the price action is still moving at the resistance of this down channel and not reaching the support again.
Support and resistance and SMAs:
On the weekly time frame, it can be seen that after getting rejected by the strong resistance of $1,600 the price line of Bitcoin cash has moved down drastically. It can be also observed that priceline has finally found very strong support at the $400 level and this is key level support for the price action of BCH. Because previously it has been working as a support and resistance as well.
Now the next resistance is at $600, $750, $1000, $1600, $1800, $2200, $3000 and $4000 respectively.
At the same time, the price action is also moving at the 50 simple moving average support and after that, we have the 100 simple moving average support on the same weekly time frame chart.
Big shark:
On the 4-day chart, the price action o BCH has formed a bullish Shark pattern. The priceline has already visited the oversold zone as it was dropped up to $468 and moved up. However, this time the priceline has completely entered the buying zone of bullish Shark and giving another chance to catch it from the buying zone of this pattern. There is also 100 simple moving average support in the potential reversal zone. The buy and sell targets as per the Fibonacci sequence of this bullish Shark are:
Buy between: $530 to $340
Sell between: $789 to $1265.42
The maximum extent of the potential reversal zone at 1.13 Fib level can be used as stop-loss which is $340. As per the above targets, this trade has a profit possibility of 270%, and a high loss possibility of up to 36%.
Conclusion:
Even though recently the price action of Bitcoin cash faced a strong downtrend in the short-term and the mid-term. But the way the price and is moving at the resistance and making several attempts to break out the resistance of the down channel and the formation of a very big bull Shark are signaling a massive break out soon.
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Link for Binance exchange, to trade crypto:
https://www.binance.com/?ref=11256882
Note: Above idea is for educational purpose only. It is advised to diversify and strictly follow the stop loss, and don't get stuck with trade.
▶️ 3Speak
