In my previous post I depicted that After taking a powerful bullish divergence in Dec 2018 the price action made upto 608% big move after that the priceline of Bitcoin Cash was going through the price correction period since Jun 2019 Upto Dec 2019 and the most lowest point has hit the 0.786 Fibonacci projection from lowest to highest point, and in the meanwhile the price action had formed a pennant and we were waiting for the bullish divergence which could lead the price action of BCH to breakout the pennant’s resistance.
Now finally we can see that the Bitcoin cash has broken out the resistance of the pennant as below:
So far it this bullish move has produced more than 43% profit but the game is not over coz the indicators and oscillators are still turning bullish.
In previous article we were waiting for exponential moving 10 to form a bull cross with EMA 20 on day chart but now the bull cross is reflected upto 3 day chart and both moving averages has crossed down the priceline and lifting the price action up.
Previously the ichimoku cloud was turned bullish upto 4hr short term chart but now it has turned bullish upto day chart and lagging span has crossed up candles and cloud both and candle sticks has crossed up the cloud with strong bullish rally which is a very strong bullish sign for the future as well.
And before we had bull cross from stochastic on day chart and MACD was turned strong bullish now we have stochastic bull cross upto week chart and moving average convergence divergence is turned weak bearish from strong bearish and turning bullish upto week chart.
On 2 day chart the price action had formed bullish Shark as below:
And now after taking the powerful bullish divergence the price action has hit the Fibonacci projection area of C to D leg and entered in sell zone of mid term trading setup as below:
Now we have a resistance at $304.48 once the price action will able to cross up the 0.786 Fibonacci projection of C to D leg the definitely the price action will hit at this resistance and if the pricline will be able to breakout this resistance the it will move to hit the next resistance level at $355.43 and this move can be rapid after this resistance we have key level resistance of Bitcoin Cash which is at $501which is not broken since Nov 2018 once it will be broken then a new bull rally will be started.
Moreover the Gartley pattern on week chart is also on the play to give more bullish power to price action as we are in the potential reversal zone of this big bullish Gartley pattern.
Soon I will post more updates with the further developments in the price action of BCH.
Moreover I have shared tradingview link below where you can find my all trading ideas on different assets and I have also shared Binance exchanges link with some other useful links coz Binance has largest volume of every cryptocurrency with minimum trading constraints.
Atif Akbar (moon333)