Forum Forums Bitcoin Cash (BCH/BCC) Forecast – Technical Analysis Bitcoin Cash (BCH/BCC) Price Analysis – October 2018

This topic contains 2 replies, has 1 voice, and was last updated by margincall margincall 1 month ago.

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  • #18235
    margincall
    margincall
    Keymaster

    This is the thread for price analysis on the Bitcoin Cash markets in the month of October 2018.

    goldengoose trading bot

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  • #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.

     

     

    #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 1 month, 2 weeks ago by CheesePuff CheesePuff.
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