BITCOIN CASH UPDATE: WAITING FOR CONFIRMATION OF BULL FLAG PATTERN
1-Day Chart
Does the formation of this channel look like a possible Bull Flag to anybody else? I've noticed that BitCoin Cash has been performing very well over the last few days and decided to take a closer look at it.
Notice how the price dropped out of the central channel a couple of weeks ago. It declined to a point in the lower channel that was equal to the height of the center channel, and then it quickly corrected back into the center of the central channel. This kind of movement is common in trading, providing some clues for when the next support or resistance levels will most likely occur.
Next, take notice of how the price has broken into the upper channel. It seems to have met some resistance at the 50-Day Moving Average (yellow line). If the price pierces through the 50 MA, I would expect it to top out at about $1,000 before it runs into more resistance and stalls, possibly followed by another return to the central channel.
However, this MAY be a major breakout in the form of a standard Bull Flag pattern. If price breaks through the resistance at the 50-Day MA with a tall upwards candle, that would be a bullish sign. After that, expect a test of the support underneath in the near future.
*On a side-note, I also noticed that SALT charts are looking very similar to this BCH chart. I'm not claiming any correllation between these two tokens - just saying that SALT also looks like a Bull Flag pattern currently in progress. It's possible that either one, or both will jump up soon. Happy trading!
DISCLAIMER: I own BCH tokens. I am not a financial advisor. Anything in the above content is meant for educational/entertainment purposes only. Do not make trades based on this article. I am not responsible for any financial gains or losses you make in regards to this information.
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Great call. Think maybe its time to sell the news, ahead of the fork and correction...
IDK. How long is BitMain going to be "burning" 12% of their transactions for? I was thinking about that earlier today: they get a ton of people into BCH, and THEN they could raise the fees back to their "normal" level again - that would give them a ton of "fees" when people go to trade out of it again. Do you know anything more about what/how/when BitMain is going to deal with this "burn???" I think that's the piece I need to research and figure out what to do about it. A sense of timing with this thing - if it's only a temporary situation - is going to be important for preserving any gains.
Says they are going to put it into an address they won’t touch but I’m also wary of this perhaps being a marketing scheme to boost prices. I always error on the cautious side. Too much market manipulation and pump/dump schemes in crypto world.
I know what you mean. Seeing as how these guys are from China, I'd say they have a different culture than Westerners, so there's some things we just don't quite understand when it comes to how they think. But, if they are in China and can screw a bunch of us out of our money, there's f@#&-all we can do about it. Probably good time to take profits: about 100% over the last month - nothing to complain about.
Exactly, bulls make money, bears make money but hogs get slaughtered.
Ha-Ha! I took your advice and moved out of my BCH position with about 40% profit. Now, BCH is down 8% for the day. Don't think it will stay down for too long, but who knows?
One of my TA go tos calls for a correction down to the 1100 range. I’m personally going to start layering in below 1200. That’s just my own plan, not advice
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