BCH/USDT Sell | S6T3 | Team Trading Contest Post for Reminane
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Hello crypto enthusiasts, this is a new week of the crypto academy and a new diversion as well, we are being required to analyze a token and carry out a real trade using the analysis we have gotten from the previous classes, I will be analyzing the Bitcoin cash coin.
For week 3, I will be joining the trading contest team of professor @nane15 and professor @reminiscence01, here is the contest entry.
The name of the token I will analyze is the Bitcoin cash token.
Bitcoin cash also known as BCH was a token created in august 2017, with the idea of increasing the size and scalability of the bitcoin blockchain.BCH is utilized to increase the use of crypto transactions and a modifying version of bitcoin, Robert Ver who founded BCH has the dream of improving the scalability of bitcoin and producing a better version of Satoshi Nakamoto's scalability, BCH uses a PoW to validate consensus and at a low transaction fee.
Bitcoin cash is a decentralized blockchain system that aims to make transactions easy through the use of peer-to-peer, that is, making a transaction without a middleman, the BCH aim to widely broaden the P2P payment where individuals get to change the assets like any other physical money and make a trade based off it, Bitcoin cash enable transactions of individuals from one wallet to another without the third-party involvement.
The major difference between the bitcoin and bitcoin cash is its block size, as bitcoin can process only at 1MB block size, the bitcoin cash has been modified to process 32MB block size, which thus makes it faster and more efficient with a low-cost fee.
Bitcoin cash can be traded on multiple exchanges such as Binance, KuCoin, Huobi Global, Bybit, and lots others as the currency also support several cryptocurrency pairs.
Bitcoin cash tends to have proven to be a solid crypto project with a solid back up with it, the BCH has been rising for a couple of days now, and its one of the crypto coins that has maintained its stability In the crypto market, as we have seen there to have been a 24h volume of $4,718,833,211 in the BCH market, which tens to shows that there is more activity in the BCH market, and it is a good investment one can profit from.
looking at the BCH overview, we could see the coin to have a strong standard in the crypto business since the coin is ranked 26th at the price of $357, despite that there is a strong project backing the bitcoin cash, the coin has tended to have fallen from the previous years, BCH was once at an all-time high at the price of $4,355.62 during its launch period around December 2017, but seems the serious behind the projects hasn't been well active enough as we have seen a large drop from the BCH market.
I will b carrying the analysis on 15 min chart, I was able to identify the support zone and resistance zone, after forming these levels, I get to notice a falling wedge formed in the BCH market.
After that, I added the TEMA indicator, which otherwise known as the Tripple Moving Average indicator, the TEMA indicator just crosses the market to the top, and the market is now moving below the TEMA, the TEMA length I made use of is the short length 15, which this tends to signifies me early of a bearish market after this was confirmed, I was able to confirm a sell trade.
I took my entry when I notices that the market is done retracing the upward movement and it was about to start going down, I utilized a sell trade in a risk-reward of 1:1, as the stop loss was placed 50% above my entry decision.
My Short trade opened at the entry price of 364.59USD, the take profit at 362.10USDT, my stop loss at 369.80USDT.
The Order is running and already showing a profit at 75x leveraged.
I do not plan to hold the Bitcoin cash for long, what I plan to do with the coin is just trade only, I do not plan on holding for so long, despite that the bitcoin presents itself as a good investment, bitcoin cash has been falling for the past year and which means we get to see more downtrend or likely not, the other reason I am not buying is the amount of the coin, I regard the Bitcoin cash to be too expensive, I had rather prefer to buy other altcoins at small value than to invest a big amount in the Bitcoin cash.
So to justify my answer, I would prefer not to hold the Bitcoin cash for so long rather than trade it at 75x leverage on a 15 minutes trade and make a profit and fall out as quickly as possible in case the market goes the otherwise of my trade.
I do not recommend people buying the Bitcoin cash as the coin has had a history of a great fall from the past years, I did say earlier that the coin once hit $4000, compared to the value at which the coin now shows too much-lost confidence in the investment and ever since then, the coin as also fallen in rank.
But regardless, there might be a possibility of a new uptrend as we might see an uprise in the coin in the future movement, But doing this will be risking lots of assets, Users interested in mining can also mine the BCH as the Coin uses a PoW consensus to maintain its security.
In this writing today, I have analyzed the proper trading set up for the bitcoin cash where I execute a sell trade at the point I witness the coin to be depicting lower lows, as well I get to confirm my sell entry with the TEMA indicator when I witness the TEMA to have crossed upward, and the indicator is trending above the market price, which shows a bearish movement.
cc;
professor @nane15 and professor @reminiscence01