#18236
margincall
margincall
Keymaster

Taking a look at Bitcoin Cash after it recorded some nice gains versus Bitcoin at the end of last month. The shorter time frame candles have formed a very nice bullish flag / pennant, inviting a lot of traders to ponder a possible long play on BCHBTC market.

It is important to remember that no candlestick formation has a 100% success rate, however bullish flags do have a tendency to break to the topside rather than the bottom, especially when there is some bullish fundamentals are at play. Let’s take a look at the 2 hour candle chart for BCHBTC.

Bitcoin Cash forecast 4 October 2018

It is best to be prepared for a move in either direction, as we will usually see some action when a bull flag / pennant presents itself. This is considered a bullish correction after the big move last month, should prices remain above the current support zone, 0.0785 btc.

Should the above mentioned support level fail, we will see a drop to the previous support zones as the market corrects itself further. It is paramount for this support zone to be solid if we were to get a bounce and another possible leg up in the market, that could push the prices to previous resistance zones, around 0.088 btc – 0.09 btc.

For those traders looking to trade the breakout, I will be keeping an eye on the 0.0812 btc price level to signal the trade. Please remember that breakout trades will fail if the volume and momentum is not be in favor of the bulls. Safe trades.

 

  • This reply was modified 4 months, 3 weeks ago by CheesePuff CheesePuff.