BCH IN DEPTH 5/6/19 - TRADE THE RANGES
Hello traders,
TraderNoxtreme back with you weekly Bitcoin Cash in depth. Please like this idea if you agree. Subscribe if you want more.
Sentiment:
Crypto seems to have shaken off the news from last week.
Ill be honest; I took the week off last week from my in depths because the fud was making me doubt what the charts were telling me. It was a mistake to not act on what I was seeing against my emotions because I would have come out with a good profit. I simply could not ignore the news because the underlying issue Tether poses is terrifying to me at its core. Every time I would write that something looked bullish in the chart, fear would blot it out. As traders we are supposed to take note of news and move on but I didn’t feel I could give you an unbiased view.
It seems that the fud screen has pretty much cleared in the chats, youtubes, and other media outlets at this point but for me; Tether is a ticking time bomb in crypto as a whole and I will be keeping close tabs on it.
Why I am concerned?
Although complicated, the news is pretty straight forward. IFinex (the Tether printer attached to Bitfinex) was hit with a legal case by the NY General Attorney saying that they did not disclose an 850 million dollar loss. IFinex says they did but the loss is real. Funds were seized by an offshore bank back in Aug 2018 (I think). In itself this is not all that big a deal but let me explain the base fear (The big deal) behind this. I know there is A LOT more to the Tether, IFinex, NY AG, drama so forgive me if I’m messing up some facts or leaving things out. Put on your tinfoil hat for a second, its story time.
What if a large chunk of the money we have been told is coming into Bitcoin is actually monopoly money? What if an unregulated player in the space (there is no regulation in this space) has been printing fake money and funneling that money into BTC since 2017. Being that BTC has been base pair for most coins in the past this would equate to the entire market being built on stilts. Now, what if it was announced that Tether truly is not backed at all even though IFinex is now saying it is 74% backed (this is a change from the previous 100%). Honestly, this will scare a lot of money out of the space IMO. The market could brush a reality like this off but I am not wanting to bet on it.
I think it is very unlikely we will get an announcement that Tether is not backed any time soon if ever but this, to me, is a major danger in the space in general. Exchanges might simply be running crypto prices up for their own gains. As we see more and more stable coins hit the markets the chances get higher and higher that one of them could simply be monopoly money.
Comment below on this.
Lets move on:
BCH Weekly: Seems Crazy
When you consider that this could be a giant bull flag; the targets seem kind of crazy. If we confirmed this bull flag, we would be looking in the mid to upper 400s. Lets call it 444 for my chart. BCH does have a tendency to got extreme though so 500s or even 600 seems in the realm of possibility. Our RSI is sitting nice at 49 breaking through some old resistance. MacD is firmly in a bullish uptrend even with our pullback. 13 and 26 EMA are now providing support again. I’ve been feeling this way for a while but this is continuing to look very bullish IMO. I think the drama is really holding this one back.
The 50 MA could stop us short of my upside breakout target.
BCH 1D: Play the ranges
BCH requires constant attention to trade IMO because it can pivot very quickly from bullish to bearish and visa versa but I am finding a lot of value for my time in it. On the daily we currently have a golden cross on the 29th and we are testing what seems to be a midpoint for our price action over the last 5 weeks roughly. We have a downward sloping resistance that has been tested 3 times with sharp rejections. RSI at 58 and a MacD threatening a bull cross. I see us potentially testing back up to our sloping resistance and then rejecting back down to 261 or 254 as we have the 50MA coming up to meet that price support. Assuming this is the action we see a short at 300 looks quite appealing because we have psychological resistance, the downward sloping resistance, historical price resistance, and larger ranges to drop through then if we wait for a pullback and a bullish trade. This being said, a break of 300 could be a major trigger for buyers and we know that this one can RUN or DUMP so personally I would rather play it from the bullish side to limit that upside risk as I am expecting this in the 4 to 600 range on our next breakout. Call me crazy if you want but this is what I see in the charts. It feels a bit crazy honestly.
But wait, we need to keep an eye on the channel that our 200MA swooped in and started making. See the red descending bottom support. Bears are smelling this.
We also have a support line from the initial start of this mid term bull trend. We have the same thing happening with LTC and I would assume we would see it on others as well.
A lot to be aware of here.
BCH 4hr: Good Dip Buying!
Again, TRADE THE RANGES ON BCH. On the 4hr we see that there is a solid dip buying pattern currently. I will be looking to snag a fill next time we break down through a range. It’s a risky play but we can see that we usually bounce back into the range above (where we dropped from) or better. If you get your entry right these are profitable trades especially if you use leverage…
We just gained the 200MA as support. RSI a bit higher at 57. MacD looking unsure but currently bearish. Increasing bull volume will probably push us up to test the top descending resistance. Short play would be even more interesting if that 4hr RSI hits oversold too even though this is unlikely.
BCH 1 hr: Best Clarity
The 1-hour chart gives me the best clarity for BCH. You can see we have a solid resistance range over 289 (blue box) and good dip buying potential below. Those V bottom drops are a good indication that bulls are accumulating on the dips. We have the 50MA, 12EMA, 26EMA all squeezing together. I believe we get one more dip buy opportunity in the near future but BCH is looking quite bullish to me overall. That does not mean much though so stay focused and trade the ranges.
Closing Note:
BCH is fantastic for practicing risk management but its quite unpredictable. I find it best keep it pretty simple and just trade the ranges based on loss/win size. Dip buying is also quite profitable but high risk.
Hopefully you enjoyed this week’s analysis. If you found it helpful, give it a LIKE, if you want more, SUBSCRIBE. If you want to team up please comment below or PM me.
TraderNoxtreme back with you weekly Bitcoin Cash in depth. Please like this idea if you agree. Subscribe if you want more.
Sentiment:
Crypto seems to have shaken off the news from last week.
Ill be honest; I took the week off last week from my in depths because the fud was making me doubt what the charts were telling me. It was a mistake to not act on what I was seeing against my emotions because I would have come out with a good profit. I simply could not ignore the news because the underlying issue Tether poses is terrifying to me at its core. Every time I would write that something looked bullish in the chart, fear would blot it out. As traders we are supposed to take note of news and move on but I didn’t feel I could give you an unbiased view.
It seems that the fud screen has pretty much cleared in the chats, youtubes, and other media outlets at this point but for me; Tether is a ticking time bomb in crypto as a whole and I will be keeping close tabs on it.
Why I am concerned?
Although complicated, the news is pretty straight forward. IFinex (the Tether printer attached to Bitfinex) was hit with a legal case by the NY General Attorney saying that they did not disclose an 850 million dollar loss. IFinex says they did but the loss is real. Funds were seized by an offshore bank back in Aug 2018 (I think). In itself this is not all that big a deal but let me explain the base fear (The big deal) behind this. I know there is A LOT more to the Tether, IFinex, NY AG, drama so forgive me if I’m messing up some facts or leaving things out. Put on your tinfoil hat for a second, its story time.
What if a large chunk of the money we have been told is coming into Bitcoin is actually monopoly money? What if an unregulated player in the space (there is no regulation in this space) has been printing fake money and funneling that money into BTC since 2017. Being that BTC has been base pair for most coins in the past this would equate to the entire market being built on stilts. Now, what if it was announced that Tether truly is not backed at all even though IFinex is now saying it is 74% backed (this is a change from the previous 100%). Honestly, this will scare a lot of money out of the space IMO. The market could brush a reality like this off but I am not wanting to bet on it.
I think it is very unlikely we will get an announcement that Tether is not backed any time soon if ever but this, to me, is a major danger in the space in general. Exchanges might simply be running crypto prices up for their own gains. As we see more and more stable coins hit the markets the chances get higher and higher that one of them could simply be monopoly money.
Comment below on this.
Lets move on:
BCH Weekly: Seems Crazy
When you consider that this could be a giant bull flag; the targets seem kind of crazy. If we confirmed this bull flag, we would be looking in the mid to upper 400s. Lets call it 444 for my chart. BCH does have a tendency to got extreme though so 500s or even 600 seems in the realm of possibility. Our RSI is sitting nice at 49 breaking through some old resistance. MacD is firmly in a bullish uptrend even with our pullback. 13 and 26 EMA are now providing support again. I’ve been feeling this way for a while but this is continuing to look very bullish IMO. I think the drama is really holding this one back.
The 50 MA could stop us short of my upside breakout target.
BCH 1D: Play the ranges
BCH requires constant attention to trade IMO because it can pivot very quickly from bullish to bearish and visa versa but I am finding a lot of value for my time in it. On the daily we currently have a golden cross on the 29th and we are testing what seems to be a midpoint for our price action over the last 5 weeks roughly. We have a downward sloping resistance that has been tested 3 times with sharp rejections. RSI at 58 and a MacD threatening a bull cross. I see us potentially testing back up to our sloping resistance and then rejecting back down to 261 or 254 as we have the 50MA coming up to meet that price support. Assuming this is the action we see a short at 300 looks quite appealing because we have psychological resistance, the downward sloping resistance, historical price resistance, and larger ranges to drop through then if we wait for a pullback and a bullish trade. This being said, a break of 300 could be a major trigger for buyers and we know that this one can RUN or DUMP so personally I would rather play it from the bullish side to limit that upside risk as I am expecting this in the 4 to 600 range on our next breakout. Call me crazy if you want but this is what I see in the charts. It feels a bit crazy honestly.
But wait, we need to keep an eye on the channel that our 200MA swooped in and started making. See the red descending bottom support. Bears are smelling this.
We also have a support line from the initial start of this mid term bull trend. We have the same thing happening with LTC and I would assume we would see it on others as well.
A lot to be aware of here.
BCH 4hr: Good Dip Buying!
Again, TRADE THE RANGES ON BCH. On the 4hr we see that there is a solid dip buying pattern currently. I will be looking to snag a fill next time we break down through a range. It’s a risky play but we can see that we usually bounce back into the range above (where we dropped from) or better. If you get your entry right these are profitable trades especially if you use leverage…
We just gained the 200MA as support. RSI a bit higher at 57. MacD looking unsure but currently bearish. Increasing bull volume will probably push us up to test the top descending resistance. Short play would be even more interesting if that 4hr RSI hits oversold too even though this is unlikely.
BCH 1 hr: Best Clarity
The 1-hour chart gives me the best clarity for BCH. You can see we have a solid resistance range over 289 (blue box) and good dip buying potential below. Those V bottom drops are a good indication that bulls are accumulating on the dips. We have the 50MA, 12EMA, 26EMA all squeezing together. I believe we get one more dip buy opportunity in the near future but BCH is looking quite bullish to me overall. That does not mean much though so stay focused and trade the ranges.
Closing Note:
BCH is fantastic for practicing risk management but its quite unpredictable. I find it best keep it pretty simple and just trade the ranges based on loss/win size. Dip buying is also quite profitable but high risk.
Hopefully you enjoyed this week’s analysis. If you found it helpful, give it a LIKE, if you want more, SUBSCRIBE. If you want to team up please comment below or PM me.
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