Bitcoin Cash DOUBLE BOTTOM
Updated
THE PRICE PATTERN:
We see a nice, classic DOUBLE BOTTOM reversal pattern in Bitcoin Cash against the
USD as well as BItcoin itself. We bounced off of the 300 hundred level convincingly,
and now if price can break the 400 level, which represents trend line resistance from the
August highs, as well as the "neckline" breakout level to confirm the double bottom.
With all these levels converging, I expect a big breakout if we can get above
and hold this 400 level, with a very favorable risk / reward and a target around
Long above 400 (trend line resistance, double bottom neckline resistance, psychological round
number)
Target 1: 450 (161.8 Fib Level)
Target 2: 500 (200% measured move of double bottom)
Stop: 360 (Lows of Daily breakout candle)
Reward to Risk: approx. 2:1
THE STORY:
Bitcoin Cash has been in a long, torturous downrend since August 19th, as more
and more Bitcoin holders got their hands on their forked Bitcoin Cash, and
sold it into the market, driving the price lower. Some exchanges like Coinbase
still need to distribute Bitcoin Cash to their users, which could further drive
down price. But at the moment, it seems like we´ve hit a bottom, and people
are coming in for another chance at a repeat of August´s insane run.
We see a nice, classic DOUBLE BOTTOM reversal pattern in Bitcoin Cash against the
USD as well as BItcoin itself. We bounced off of the 300 hundred level convincingly,
and now if price can break the 400 level, which represents trend line resistance from the
August highs, as well as the "neckline" breakout level to confirm the double bottom.
With all these levels converging, I expect a big breakout if we can get above
and hold this 400 level, with a very favorable risk / reward and a target around
Long above 400 (trend line resistance, double bottom neckline resistance, psychological round
number)
Target 1: 450 (161.8 Fib Level)
Target 2: 500 (200% measured move of double bottom)
Stop: 360 (Lows of Daily breakout candle)
Reward to Risk: approx. 2:1
THE STORY:
Bitcoin Cash has been in a long, torturous downrend since August 19th, as more
and more Bitcoin holders got their hands on their forked Bitcoin Cash, and
sold it into the market, driving the price lower. Some exchanges like Coinbase
still need to distribute Bitcoin Cash to their users, which could further drive
down price. But at the moment, it seems like we´ve hit a bottom, and people
are coming in for another chance at a repeat of August´s insane run.
Note
Great execution! Targets have been reached. I think we'll see some resistance around this 520-550 level, so taking profits and seeing how price reacts around this level.
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Sign up for TastyWorks - The Broker of the Future:
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Twitter:
@BerlinTrader591
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