Hello Everyone,
Hope we're all having a lovely Thursday (aside from the crypto markets sliding). I'm seeing a potential bear flag forming on BCH. Matched with the relatively low volume on the buyers side and the FOMO in a lot of people's minds, I'm predicting that we'll see another correction downwards. Hopefully we're seeing a healthy correction, but you never know for sure in these markets :)
The reality is, we saw a HUGE movement upwards without any particularly noteworthy retracements along the way. Think of it like building a house upwards so quickly that you're not putting in enough supports as you go up. Once one floor goes down above, it brings down many floors beneath it, too (in this case, over $1000 worth in BTC and a whopping $3000 in BCH!!!). FOMO shot us upwards, it can drag us downwards with just as much force (if not more).
The chart above uses the 4 hr bars. To be clear, I am predicting it will decrease further, perhaps to $1100-$1200 or so. If we catch support down there, then we can start a new cycle up, assuming we're truly out of the bear market (which I don't believe we are at all). Of course, it all depends on what BTC decides to do, but there's a similar pattern on that chart, too!
My current position in BCH is a long position from $1264 with a stop loss at $1300. The stop loss was originally set for $1270, but when I saw a bounce into the $1300 range I moved it up. At this point, I really don't trust this market much, so I use pretty long stop losses when I can because of the volatility (It could randomly drop $100 before shooting up a thousand! lol). But since I'm leaning heavily towards downward movement now, I'm using a tighter stop loss order. If it dips below $13 K, I think we'll go down even further.
THE LESSON: USE A STOP LOSS!
Thoughts of all this? It's just my 2 cents :)
All the best,
James
Hope we're all having a lovely Thursday (aside from the crypto markets sliding). I'm seeing a potential bear flag forming on BCH. Matched with the relatively low volume on the buyers side and the FOMO in a lot of people's minds, I'm predicting that we'll see another correction downwards. Hopefully we're seeing a healthy correction, but you never know for sure in these markets :)
The reality is, we saw a HUGE movement upwards without any particularly noteworthy retracements along the way. Think of it like building a house upwards so quickly that you're not putting in enough supports as you go up. Once one floor goes down above, it brings down many floors beneath it, too (in this case, over $1000 worth in BTC and a whopping $3000 in BCH!!!). FOMO shot us upwards, it can drag us downwards with just as much force (if not more).
The chart above uses the 4 hr bars. To be clear, I am predicting it will decrease further, perhaps to $1100-$1200 or so. If we catch support down there, then we can start a new cycle up, assuming we're truly out of the bear market (which I don't believe we are at all). Of course, it all depends on what BTC decides to do, but there's a similar pattern on that chart, too!
My current position in BCH is a long position from $1264 with a stop loss at $1300. The stop loss was originally set for $1270, but when I saw a bounce into the $1300 range I moved it up. At this point, I really don't trust this market much, so I use pretty long stop losses when I can because of the volatility (It could randomly drop $100 before shooting up a thousand! lol). But since I'm leaning heavily towards downward movement now, I'm using a tighter stop loss order. If it dips below $13 K, I think we'll go down even further.
THE LESSON: USE A STOP LOSS!
Thoughts of all this? It's just my 2 cents :)
All the best,
James
Comment:
Well, we went up lol technically my bear flag is still valid (the upward movement is still within the flag), but I definitely didn't see that coming! I have set my stop loss up to $1340 now. Let's see what happens next!
Comment:
Shot up! Moved my stop loss up to $1380, let's see how far this can go! :D