#18268
margincall
margincall
Keymaster

Bitcoin Cash has struggled to break out of the bearish trend vs Bitcoin, as illustrated on the 1 Day chart below. I am using the MA 10 / MA 20 cross to determine possible buying or selling opportunities, as well as using the RSI as a general guide for price momentum.

BCHBTC price forecast 19 Oct 2018

In this scenario higher risk traders are looking to play a possible bounce, should RSI recover and push back up above the 50 mark. Being mindful of the near term support zone at 0.066 btc, I am looking at the divergence between the RSI and the actual price action.

A bounce here could quickly test the shorter term resistance at 0.07 btc and if there is enough buying volume present, we could see the bounce push up to the previous resistance zones of about 0.074 btc – 0.077 btc. This is where I will look for the eventual breakout, and I expect that resistance could be tested a few times before we get an eventual breakout. A breakout to the top side here could test 0.08 btc – 0.09 btc as possible targets.

All the above mentioned is assuming that support at 0.066 btc holds, should this support level fail, we will see new lows incoming on the BCH markets and we should prepare accordingly. If the price would briefly dip below this zone I will wait for the RSI to confirm the bearish momentum, and possible invalidation of the divergence mentioned earlier.