Bitcoin Cash has been bearishly trading after making an all-time high at 0.53890581 on November 12 on the Poloniex chart. The move generated an extremely long wick above the body of the day’s candle, indicating heavy selling pressure above 0.25. As bears cemented that resistance level, Bitcoin Cash tumbled to as low as 0.06815334 on December 8. The market has been rallying since; it even managed to go above 0.25 on December 20, albeit briefly.
Technical analysis show that the price action over the last month has created a reversal pattern that can take Bitcoin Cash to 0.43. Currently, the market is retreating after it failed to breach resistance at 0.25. While others may see this as a bearish move, the dip is actually healthy. Sellers are dumping their positions at a lower price. When selling is done, bears won’t have enough ammunition to defend 0.25 against the bulls.
The strategy is to buy between 0.165 and 0.2. Should support level at 0.165 hold firm, the market will create a new higher low. It will then have the momentum to breach 0.25 and hit our target of 0.43.
Daily Chart of Bitcoin Cash/Bitcoin on Poloniex
As of this writing, the Bitcoin Cash and Bitcoin pair is trading at 0.18129 on Poloniex.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
The post Trade Recommendation: Bitcoin Cash appeared first on Crypto Currency Online.
source https://cryptocurrencyonline.co/trade-recommendation-bitcoin-cash/
No comments:
Post a Comment