BCHUSD
Another spawn from the Bitcoin stable that has behaved technically perfectly - could be fresh from the latest chart
book showing what a 'stock' can do under perfect conditions - but this time looking at downsides, not upsides...
It's fallen below it's dynamic support line and then come back up to retest it from the underside....and repeatedly
failed...that's the big clue that this is headed south from here - can be shorted now with stops above the line, yes? It's
exactly the opposite of what a 'good' breakout to updside will look like. And in doing so it has fallen in 4 sections/waves to
the low, searching for support from the beginning of this structure to left of chart, finding it on the lows of that
structure and rallying there.
But this decline is not done yet until Bitcoin itself makes a clear bottom. Near term support at 2322 must hold up here
to avoid another test of 2248 at least, if not to 2209. Any failure to hold this latter level during the course of this week
will tip BCH back into serious bear territory again and will likely force price much lower still, to 1840 at least, if not to
1766 where we can look to get long again if struck.
But it's holding for now above 2322 so is neutral to mildly positive...but once 2320 gives way it flips back to negative
again and we look to pick it up from lower levels from there.
Another spawn from the Bitcoin stable that has behaved technically perfectly - could be fresh from the latest chart
book showing what a 'stock' can do under perfect conditions - but this time looking at downsides, not upsides...
It's fallen below it's dynamic support line and then come back up to retest it from the underside....and repeatedly
failed...that's the big clue that this is headed south from here - can be shorted now with stops above the line, yes? It's
exactly the opposite of what a 'good' breakout to updside will look like. And in doing so it has fallen in 4 sections/waves to
the low, searching for support from the beginning of this structure to left of chart, finding it on the lows of that
structure and rallying there.
But this decline is not done yet until Bitcoin itself makes a clear bottom. Near term support at 2322 must hold up here
to avoid another test of 2248 at least, if not to 2209. Any failure to hold this latter level during the course of this week
will tip BCH back into serious bear territory again and will likely force price much lower still, to 1840 at least, if not to
1766 where we can look to get long again if struck.
But it's holding for now above 2322 so is neutral to mildly positive...but once 2320 gives way it flips back to negative
again and we look to pick it up from lower levels from there.