Bitcoin Cash - Bullish Momentum but Showing Patience
Overview:
Bitcoin Cash is quietly up 40%+ from its April low and currently broke through the first major support of 787 and 845 which is significant with the number of overlapping resistance levels in this area. Is this the time to jump in as the market starts to show early signs of a new bullish wave?
Often the mistake that the herd and new traders make is jumping into bull runs right at a resistance level where traders are looking to sell. The FOMO effect, and it is strong to many. As investors we have watched our portfolios continue to shrink through the correction. It simply feels like an eternity to many, and all to often they end up selling right at the bottom as the street calls for lower and lower levels. A long term investor simply battens down the hatches, shuts their laptop and rides out the storm. After a week or so of seeing the market show signs of an “early” recovery we as swing and positional traders need to exercise patience and wait for opportune setups. Its not the quantity of trades, its the quality. So where are we with Bitcoin Cash?
Technical:
As we stated we broke through the initial resistance line and the momentum has carried us quickly into a major resistance level at 901. The signal looks great, but as Marc often states in his articles, “not all signals are created equal” and this is a perfect example. This is right into a major resistance zone, and though breaking through this level could carry us higher towards 993, we are just as likely to see a pullback from here. The 787 level, which has been a level of resistance over the past week, is our new level of support as there are several overlapping levels of importance here, including the 38.2% retrace of the previous bearish swing. Often these levels are broken, creating a “fake break” to the downside.
Minor support is found between the 746.9 and 766.4 area. 724.6 is the first major support level with 658.8 and 695.2 being an ideal area for a reversal. This is where we are looking for a trade setup, not above the major support line in the fifth wave of the current wave cycle. To be clear we can move higher from here, which as an investor is great. As a swing trader we are looking for high probability setups not just any setup so we are simply exercising patience and waiting.
Summary:
As the market continues to heat up, and trend to the upside, it is important to understand that “no trade” is often the best trade. To often swing traders feel as if they MUST be in the market or have active trades every day. This is simply not true. Quantity of trades is less important than quality. If a trade reveals itself in Bitcoin Cash we will update and post on elsewhere, but if one does not we will simply look for better setups elsewhere. This has been updated from our article this morning.
Bitcoin Cash is quietly up 40%+ from its April low and currently broke through the first major support of 787 and 845 which is significant with the number of overlapping resistance levels in this area. Is this the time to jump in as the market starts to show early signs of a new bullish wave?
Often the mistake that the herd and new traders make is jumping into bull runs right at a resistance level where traders are looking to sell. The FOMO effect, and it is strong to many. As investors we have watched our portfolios continue to shrink through the correction. It simply feels like an eternity to many, and all to often they end up selling right at the bottom as the street calls for lower and lower levels. A long term investor simply battens down the hatches, shuts their laptop and rides out the storm. After a week or so of seeing the market show signs of an “early” recovery we as swing and positional traders need to exercise patience and wait for opportune setups. Its not the quantity of trades, its the quality. So where are we with Bitcoin Cash?
Technical:
As we stated we broke through the initial resistance line and the momentum has carried us quickly into a major resistance level at 901. The signal looks great, but as Marc often states in his articles, “not all signals are created equal” and this is a perfect example. This is right into a major resistance zone, and though breaking through this level could carry us higher towards 993, we are just as likely to see a pullback from here. The 787 level, which has been a level of resistance over the past week, is our new level of support as there are several overlapping levels of importance here, including the 38.2% retrace of the previous bearish swing. Often these levels are broken, creating a “fake break” to the downside.
Minor support is found between the 746.9 and 766.4 area. 724.6 is the first major support level with 658.8 and 695.2 being an ideal area for a reversal. This is where we are looking for a trade setup, not above the major support line in the fifth wave of the current wave cycle. To be clear we can move higher from here, which as an investor is great. As a swing trader we are looking for high probability setups not just any setup so we are simply exercising patience and waiting.
Summary:
As the market continues to heat up, and trend to the upside, it is important to understand that “no trade” is often the best trade. To often swing traders feel as if they MUST be in the market or have active trades every day. This is simply not true. Quantity of trades is less important than quality. If a trade reveals itself in Bitcoin Cash we will update and post on elsewhere, but if one does not we will simply look for better setups elsewhere. This has been updated from our article this morning.
Related publications
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.