In today’s analysis, I would like to address the Bitcoin Cash (BCH) coin, as we (except Etherea a Litecoinu) have not paid attention to another alt for quite some time. I think that tomorrow we could also deal with XRP in return. In any case, I would like to begin by commenting on the market in general. In fact, I would like to comment on the sentiment, which I haven’t paid much attention to lately.
From social networks, I registered the pure joy of Bitcoin jumping by more than 5%. And $ 100,000 and similar bullish scenarios are being painted again. Thanks to the relatively long stagnation, people have already become nervous and are seriously looking for hope even in tiny movements. Even in January / February, the 5% movement meant almost nothing and now it is a reason to celebrate. For me personally, it is very interesting to follow the crowd psychology in the markets.
Notice for tomorrow’s video analysis:
During the second half of Sunday afternoon, I will release a video analysis on Bitcoin again. As soon as this happens, you will of course be notified. You can look forward to another analysis full of useful information, where we will explain important contexts that you will not learn from most other analysts. If you are give straight awayso that you do not miss the analysis.
Current situation at 1W TF BCH / USD
First, we should look at the weekly chart so that we can better assess the structure that has been forming in the market over the last few weeks. Since the beginning of the year, it’s a pretty good tragedy at first, because price developments are quite a mess. Popularly speaking, Bitcoin Cash goes up, down, up, down. At the same time, the turnover structure formed between 2019-2020 was very solid.
With the new year, it is so uncertain and the risk of being thrown out of the market at a stop loss is very likely. However, not using stop loss is not the solution, such a method is gambling. In any case, by the beginning of this year, volumes had been steadily rising, which confirmed the expansion of the exchange rate. But since then the volume has been declining, which is definitely not the English. And in the last few weeks, the volume has rather stagnated, from which it can be estimated that a spike is approaching. Volatility is rising, so we should see more volumes in the near future.
Indicators
There was a bearish divergence at RSI that we can consider applied. However, there is a certain risk that when the S / R level of $ 774 is exceeded, a double bearish divergence will be created. The above also applies to MACD, or we would definitely have a divergence on the histogram. Otherwise, there was a threat of a very tight bearish cross, but in the end, due to its rapid rotation, it was rejected.
Current situation at 4H TF BCH / USD
However, on the 4H graph, BCH looks quite positive. For more than a month, the exchange rate consolidated within the drawn trading band, and near the S / R level of USD 430, we basically created a double bottom. And the said double bottom was also confirmed at the moment when there was a breakthrough from the already mentioned zone, because we conquered the local peak from March 13.
Most importantly, however, the breakdown of the top wall of the band and the S / R level was $ 620 accompanied by a decent bull volume. In contrast to February, however, volumes are still weak. But the important thing is that there was a spike in volumes, which increased the chances of a successful continuation of the exchange rate expansion.
Personally, I see it as a problem that when testing the top wall of the band, the volumes were smaller and without obvious more effort. That’s why the reflection is so non-greasy, unsalted. Simply put, other shoppers are hesitant because they can’t be sure that only the sloping band is a strong support.
At these times, it is quite important to perceive price action in connection with volumes. Will the price rise along with the volume? Great. Will the price rise while volumes stagnate? Poorly. However, at the moment, the price is again approaching the S / R level of 687 USD, where there was a strong rejection. If the shopper breaks the level, another goal is the current annual peak from mid-February. If we experience a breakout, self-confidence in the market will increase significantly.
Indicators
According to RSI, Bitcoin Cash is still quite bullish, but of course it is no longer as strong as it was last year. Which is not a problem, the expansionary trend has a great chance to restore the previous force. But it won’t be overnight. As for MACD, it is approaching bullish cross. Therefore, the negative momentum completely lost its power.
In conclusion
In the lower time frame, the whole situation looks quite positive and is here not a good chance to beat the current annual peak at the S / R level of $ 751. However, the weekly chart no longer looks positive. In fact, the structure of the market is quite chaos, which should not be underestimated. In short, Bitcoin Cash is quite sensitive to unfavorable market developments. Much more than, for example, Ethereum, which again conquered all time high.
ATTENTION: No data in the article is an investment board. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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