BCH - Buy BitcoinCash now, you can thank me later
In a purely technical view, I think BCH has flipped bullish, or at least in a transition phrase to enter the bull's territory. Specifically, BCH has successfully broken above $500 zone (with good volume), which had been acting as a crucial resistance level since 2019. What I am seeing from the current price action is that BCH is retesting this level after breaking. To me, this situation looks quite similar to Bitcoin price action when it broke above $10k and then retested it in Aug-Sep 2020. Obviously, there will be two possibilities that can happen here:
a) If BCH price fails to hold above $500, then price might keep ranging between $100 and $500 as it has been doing for years.
b) If BCH succeeds in this retest, it is likely to see a similar price action as that of BTC from Oct-2020 till now.
The potential reward in this case obviously overshadows the risk, so this is a very good bet in my opinion. The only problem is that we cannot know the exact point of time when the price would pump, so it would be a little bit risky if one enters this trade on a leverage position (because of funding rate). Because of this, I would suggest using spot trade (buy the real BCH and hold). Furthermore, on the daily chart, the current price drop has retested and rebounded above Kijun and Tenkan lines of Ichimoku, and price is still well above the cloud. For those recent, I cannot find any reason why we dont buy BCH now.
My setup would be as follow:
Entry: $450~$500
Stoploss: $266
Target: eyes on $1756, but update later
a) If BCH price fails to hold above $500, then price might keep ranging between $100 and $500 as it has been doing for years.
b) If BCH succeeds in this retest, it is likely to see a similar price action as that of BTC from Oct-2020 till now.
The potential reward in this case obviously overshadows the risk, so this is a very good bet in my opinion. The only problem is that we cannot know the exact point of time when the price would pump, so it would be a little bit risky if one enters this trade on a leverage position (because of funding rate). Because of this, I would suggest using spot trade (buy the real BCH and hold). Furthermore, on the daily chart, the current price drop has retested and rebounded above Kijun and Tenkan lines of Ichimoku, and price is still well above the cloud. For those recent, I cannot find any reason why we dont buy BCH now.
My setup would be as follow:
Entry: $450~$500
Stoploss: $266
Target: eyes on $1756, but update later