BCH/USD pair and Bitcoin analysis (#8)
Things is calming down. BCH and BTC consolidating. Bulls gathering their strength and preparing to start pushing again.
As I predicted two days ago the BTC rally had lost steam and we are now in consolidating phase.
BTC is high above MA90 moving average (90 frames moving avrage) and as long term moving averages act as magnets to the pair price, the price is always tend to return to the long term average value.
MACD is crossing center line and when faster MACD average crosses the slower ones this is sign that trend will change.
Also RSI is companions MACD heading downwards from overbought area indicating trend change. First few candles after price is turning downwards indicate with long wicks, that there is still some bull resistance. Bulls in BTC don't give up fast.
In my opinion there will be correction to the $7250 levels or even to the magic $7000 mark in the next 3 to 5 days. But lower levels are very unlikely. Long term prognoses are tricky, but we can speculate on $9000 or even magic $10,000 level at the end of that year. So in may next posts I will concentrate to predict the right sweet spot to entry long for long term investors. So stay tuned.
As I sugested in my previous post waiting for price to cross MA90 moving average is paying off and now we are pretty clear to enter long and start collect some coins. Another good sign is that MACD averages is crossing center MACD line, also RSI is heading up and confirming uptrend.
My filling is that this time is not going to be something very impressive, but in my opinion this entry point is solid one. Don't forget stop loss settings. Conservative one is just bellow $800 mark and for more expedite traders millennium mark ($1000) will work also. Stay tuned in the next days picture will become clearer.
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Image sources: Investing.com
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