Short

BCH - 10-15% correction in progress till $250

Updated

We have 5 waves (green) done and there is bearish divergence with RSI making lower low on the 8H timeframe. The 21 Weekly MA acted as resistance above $300 and rejected the price.

Optimistic Scenario:
This 5 wave is beginning of a new rally, and we correct to 0.5 Fib ($250) or 0.618 Fib ($230) before we make new highs (bove $310). The 50 WMA can also support at $250

Pessimistic/Bear Scenario:
We just finished a flat correction and will make a lower low (below $200) as part of (C) wave. But the move down will be in 5 waves. We will know soon enough

Eitherways, we have to correct

Note

Dropped as expected after resistance @ 0.618(B)

Bullish:ABC correction after which the rally continues to make new highs
A:C length=1:1 & also within red channel.Must cross median line (275) & break out of channel

Bearish:Bounce must be< $277, we break below channel($258)

Trade closed: target reached

We planned for $250, got $252. Good enough!
Getting support from channel bottom again and from 50DMA/50WMA ($250)

Bearish:We lose the channel & 50DMA support
Bullish: We bounce here, take out resistance at $260, median line and finally out of red channel

Note

Target 2 at 0.618Fib ($235) also hit

imkeshav

Follow me for more updates
twitter.com/imkeshav
youtube.com/channel/UCskbBdZstBUQ_4y2o912zzw

Also on:

Related publications

BCH - New lows eventually?

by imkeshav

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.