BCH Bitcoin Cash ABC bearish signal
From the swing low to the current price is up almost 500% in a few months, seems like a correction would be a reasonable expectation.
Other reasons pointing towards a correction:
- Ending fifth wave diagonal forming,
- higher highs are translated into lower highs on the RSI (the RSI is just a momentum indicator) to show bearish divergence,
- My rough EW count shows completion, or near completion of the impulse move,
- After volume peaks in April and mid-May volume is now tailing off (I suspect more people than not are failing to see scope of near-term upside),
- MACD moving averages have just crossed over and are heading towards the "zero line",
- MACD histogram has ticked to the downside,
- Bearish Indications on BTC are lining up as well.
Maybe, despite all of these factors, it will continue to go up. Sure.
Just a small note; I like the BCH project and general philosophy. I believe BTC core aiming to be a "store of value" (like gold) at the expense of ease of transaction is anathema to the whole idea of cryptocurency. So the larger block size of BCH, and larger bandwidth / faster transaction confirmation I believe is more appropriate. If the gold market wasn't liquid and it would be difficult to convert gold to fiat I believe gold would have less utility and would be less attractive as a store of value. Despite my views on BCH, everything can be a bad buy (I wouldn't call it an investment) given the wrong price and /or wrong timing. Here, I think we have at least one of the two factors, and maybe both.
Good luck everyone, protect those funds. BTW I am not short BCH, I just have an expectation that a correction is inbound.
Other reasons pointing towards a correction:
- Ending fifth wave diagonal forming,
- higher highs are translated into lower highs on the RSI (the RSI is just a momentum indicator) to show bearish divergence,
- My rough EW count shows completion, or near completion of the impulse move,
- After volume peaks in April and mid-May volume is now tailing off (I suspect more people than not are failing to see scope of near-term upside),
- MACD moving averages have just crossed over and are heading towards the "zero line",
- MACD histogram has ticked to the downside,
- Bearish Indications on BTC are lining up as well.
Maybe, despite all of these factors, it will continue to go up. Sure.
Just a small note; I like the BCH project and general philosophy. I believe BTC core aiming to be a "store of value" (like gold) at the expense of ease of transaction is anathema to the whole idea of cryptocurency. So the larger block size of BCH, and larger bandwidth / faster transaction confirmation I believe is more appropriate. If the gold market wasn't liquid and it would be difficult to convert gold to fiat I believe gold would have less utility and would be less attractive as a store of value. Despite my views on BCH, everything can be a bad buy (I wouldn't call it an investment) given the wrong price and /or wrong timing. Here, I think we have at least one of the two factors, and maybe both.
Good luck everyone, protect those funds. BTW I am not short BCH, I just have an expectation that a correction is inbound.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.