Bitcoin Cash: Comprehensive Technical Picture and the Critical Week

2019-04-23T03:59:18.000Z Honest Cash

Hi Everyone, Yesterday I shared a couple of charts showing weekly cup and handles in both Bitcoin as well as Bitcoin Cash. The interesting part about these two coins is that for very 1% that Bitcoin increases, Bitcoin Cash jumps by 2 to 3 %. It is a clear indicator of the fact that whosoever is buying Bitcoin is promptly converting it into Bitcoin Cash. However, a new candle has begun forming in BTCBCH on Bittrex in monthly chart, and we need to make a complete analysis due to this development. Yeah, I know it is the 23rd :) but the timings on Bittrex are its own and I am not fussed up about why that is so. A new candle is forming, and I love candles. They have a story to tell.

Here is the monthly chart of BCHBTC on Bittrex:

BCHBTC monthly chart

Do you see that small red dash pointed by the black arrow from my snipping tool? That is what all the fuss is all about. Now according to this chart, and owing to the retracement principle of candlesticks, the price of BCH can fall till .05. It is currently at .056 so that will signify a fall of about 10%. But will it fall that low? Let us zoom in into the weekly chart now:

The three white lines are the Bollinger Bands. The candle pointed with the horizontal red arrow closed outside the Bollinger bands signifying that its high will be modified in the coming future. The candles pointed with the vertical red arrow also signifies that its high will be modified. When i say modified I mean that the market will score a higher high. The candle pointed with the slanted red arrow was the previous week's candle and it closed inside the Bollinger Bands. It happened about four and a half hours ago at daily close. So now we are in the candle signified by the Black arrow, and this is the critical week that I am talking about. If this candle closes inside the Bollinger Bands i.e. below .059 then we will see selling in the next week as well. For the record, and from now on our Bittrex week begins on Tuesdays :). Anyways, we need a close above .06 in this week to confirm bullish bias in the nest week. However, if the price is below .059 next Tuesday then we will see further bearishness in the next week. Do not worry as yet. I did say that in this month (beginning 23rd April) we can see the price fall till .05. We zoomed in into the weekly chart, and we found that we do not have enough to go with. However, let us zoom in further into the daily chart to get more data:

The black arrow is the current daily candle. IF this candle closes below .053 as then it will close below and outside Bollinger Bands, it will confirm Bearish Bias in the market. A close above .053 in daily chart would mean that more BCH should be bought :). Now that is the level that you need to remember for tomorrow. IF BCH closes above .053 it will move above. However, if it closes below .053 the price will fall.

Now let us zoom in into the four hour chart:

The current four hour candle is an extremely encouraging one so far. The surge happened because Bitcoin just scored a high of 5600. However, we need the current four hour candle to close above .053 to confirm bullish bias, and I think that is going to happen as we have excellent candles forming in hourly chart:

Guys. If this hourly candle closes above .054 then I think we should stop worrying about the market going till .05 completely.

One last fifteen minute chart for you:

The candle pointed with the red arrow is a very welcome candle. It signifies that the high of this candle will be modified. The high of this candle is .056 and now due to this candle closing outside Bollinger Bands it is now confirm that BCH is going up :). Today should be an excellent day for BCH. And why not? Price of Bitcoin is surging. Looks like Bitcoin will be the first to break out of its cup and handle. Bitcoin has also made a candle closing outside Bollinger Bands confirming that the high of 5600 will be modified :). And as Bitcoin goes up so will Bitcoin Cash.

I guess it was a long and exhausting analysis. I am sharing it so that others can learn this technical analysis. TA with these candles i.e. the ones closing outside Bollinger Bands will always give you a 90% accurate picture. The 10% is always unforseen. We can be as accurate as 99% but can never be 100% accurate. Therefore, invest wisely. If you have any questions do not keep it to yourself. If you want daily analysis or hourly analysis, I am game as long as I am awake and online.
Have a nice BCH day!