Bitcoin Cash is one of the Blue chips of Altcoins and currently ranked no. 4 as per the Coingecko and has a Market Cap of 4.9 Billion Dollars, just below Bitcoin, Ethereum and Ripple. BCH was created by forking Bitcoin in 2017, and it was further forked in 2018; new chain was named Bitcoin SV (Satoshi Vision).
Bitcoin Cash Price Analysis
A quick glance at BCH/USD at the monthly chart given below, and it is clear that BCH prices are back to the key and critical support (marked by orange and red dotted lines, respectively). Prices have started a new trend after going through a downtrend that started around January 2018 after making an ATH (All-Time High) of $4000 around Dec 2017. It would be a good for ladder in Buys from here as new cycle is in the making for a long-term investment.
Going through 1 Week Time Frame chart for Bitcoin Cash, it can be clearly observed that the price hit Critical support (red dotted line) and bounced back, did an S/R flip of Key support (pink dotted line). One can also see prices went above 49 days SMA (solid green line) around May 2019, but Buyers were unable to push through resistance around $429-$500 as marked by white dotted line in the below given chart and prices fell back after failed attempt on this S/R flip. Current BCH prices are just above Key support (pink dotted line) at $268.3 and also supported by 49-day SMA (solid green line) and 9-day SMA (solid blue line).
For a swing trade here is the TP (take profits) targets that one can expect:
- TP1: $429 will give 55% profit
- TP2: $734 which will give 165.98% profit and have an R/R (Risk/Reward) ratio 5.4
- TP3: Open
SL (Stop Loss) at $268 just under key support line, which corresponds to 30.75%.
Looking at Bitcoin Cash price chart from 1 Day Time Frame perspective with Ichimoku indicators given below, one can observe the following:
- Daily BCH Price is above the Kumo into the Bullish zone.
- Current Price candles are below Kijun Sen (solid blue line) and heading towards Senkou Span B (Kumo) acting as a support, expect short term downtrend, and price may test the support, which also coincides with the Key support area (pink dotted line) at $268.
- Chikou Span (solid orange line) is above the price candlesticks, thus, indicating bullish momentum.
- Conclusion: The overall trend is Bullish, and Bitcoin Cash is currently going through a retracement and can expect a retest of support at $268.
One can confirm the following observations again with other indicators. Laying a Fibonacci Tool on the same 1 Day Time Frame chart, the following things can be observed:
- 38.2% is coinciding with our Monthly Key support (pink dotted line)
- 50% retracement corresponds to $253.8 and 61.8% to $241
Since 38.2% on the Fibonacci tool coincides with our monthly key support level and Senkou Span B, one can expect a bounce from here as this would act as strong support. If not then expect it to retrace to 50% or 61.8%, i.e. $253 or $241 respectively.
Using the same Fibonacci retracement tool with a little different approach, one can reach the same conclusion as illustrated by the below given chart of BCH/USD. Retracement of 61.8%, i.e. $264.5, almost coincides with the monthly key support (pink dotted line) at $268.3. Prices bounced from the retracement of 78.6%, i.e. $196, and looks like it has done a successful S/R flip of 61.8%.
Conclusion: One can add Bitcoin Cash here for the long term #HODL (crypto term for HOLD) as prices are near-monthly Key support level and have the potential of reaching previous ATH or higher in the next Bull Run. For swing trades it would be interesting to note that one can add up/long BCH here once prices bounce from 61.8% Fib level and exit at TP1 and TP2 mentioned above while protecting the profits with SL (Stop Loss).