BCH Next Move Likely HigherCOINBASE:BCHUSD Bitcoin Cash on coinbase saw a ridiculous 1st day of trading, followed by a rather massive bearish move on incredibly high volume. It performed a 50% retracement and continued lower, but has now bounced and challenged the 78.6% fib ~2677 on multiple occasions on high volume. Each one of these attempts resulted in a higher low. We are holding the 4-hour 50 SMA (which is now turning up) after breaking over it twice on moderately high volume with a very clean accumulation phase in-between the breaks.
As for a counter-argument, the green 4hr 20 EMA is proving hard to hold above and is being respected on backtests during distribution and breakdown phases. Sellers are being found in the 2700's consistently. Hard to say how many tests it will take to overcome that sell wall and whether they will give way before support dries up.
However, red volume bars are all avg or below average today, despite a failed attempt to break over resistance. This pushes me to believe we are looking for a move higher, and it's likely worth accumulating more coins here. Could it be a very large bear flag? Of course! But if the Stochasics bounce off the oversold condition, price meets the lower trendline again, or we see price hold the 20 EMA on a dip, why not take an entry, if nothing else for a relatively easy scalp to 2700? Expect some resistance in the yellow zone on the chart. 3k is likely the true pivot point that will change this chart from bearish to bullish. A break and hold of 3k and this one is going higher.
