BCH - Aiming For More, Or Is It Over For Now?
Updated
In this comparative analysis, we can notice how, before mid-October, BitcoinCash and Bitcoin had a negative correlation (marked by the purple arrows as price action from both repelled each other), and as the Elliot Waves cycle on BCH initiated around October 23rd this has shifted to a positive correlation, as rallies in BitcoinCash mimic those in Bitcoin at a minor grade (notice the yellow arrows, as upward movement in BCH is congruent with BTC rallies, followed every time with the proper correction in both pairs). Although, price action already reached $690, which is very near the ultimate target for the 3rd wave, pushing it a bit higher than expected, and this minor correction might be the 4th wave as well since there seems to be a correction for Bitcoin in the near future, and BCH should follow it according to our correlation study. However, in case a deeper correction takes place and the 4th wave goes to a lower level, price shouldn't go below the $520 support level. Currently within a bullish symmetrical triangle, and if it breaks upwards past the previous resistance around $690, we should see price pushing for a third leg-up towards the 5th Elliot Wave.
Note
The deeper correction bounced almost perfectly from the $520 support yesterday, as price reached a low of $521. However, the current pattern might be compromised and the best approach is to lock profits if a position was taken at lower levels and re-enter it once the $690 resistance is properly penetrated.Note
Now that the $690 resistance was penetrated, immediate targets for the completion of the EW cycle are $800, $900, $1000.Good luck!
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