Bitcoin Cash, BCH made a Bear Trap Move?

2 nov 2018

As many other alts, BCH was looking very bad and bearish a week ago, but i was very hesitant on giving short trades. Because it's not the first time that most of the TA signals say DOWN but the market does the opposite. We have al all learned it the hard way, that this market has become a Trapping market. The main reason for this is the low volume, so unless that changes we always need to be aware of this. The traps go both ways, not only bear traps, also bull traps.

The bigger picture though, shows the big bullish wedge on BCH is still valid. Even though the breakout was good a month ago, the follow through was very weak. But the price has still never dropped below that green support level, keeping the bullish wedge alive. The yellow circle shows a small bear trap and the last few hours we see a good strong move up (counter move).

For the long term picture, those 2 red resistance zones need to break. If the bulls are able to break the last one, it would be a very big bullish sign.


Previous analysis:

2 nov 2018

Nota

Seems i forgot to add the 2 red resistance zones in the chart

3 nov 2018

Nota

BCH made a good rally the past few days after that bear trap move, which is starting to look like some people already knew UPFRONT, that the hard fork news would get announced. Yeah well, what else is new in crypto :)

It looks like a bearish wedge has been formed, but it looks quite strong. The movement within the wedge is not typical. For this to make the drop of the wedge, i think Bitcoin has to break 6300 for that to happen. Otherwise there might even be a chance for a break upwards. I am not trading this wedge because of the doubts, what i WILL do is if it plays out like the blue line on the right, is short it, if a break up fails and drops back down again.

4 nov 2018

Nota

A great hunch, this wedge just did NOT feel like a normal wedge :). Made a huge breakout now and from the looks of it, there is only 1 level left to break for the road towards the 900. The 600ish resistance is the last one, if that one breaks the long term picture (bullish wedge) gets confirmed and the target will be around 800/900. Now don't expect a straight line up, think those days are probably part of history. The volume on this breakout is perfect as well, as it should be, a lot of volume.



Here we can see the 500/520 was take out quite easily but the 540ish got some resistance, but nothing special of course, it has already made quite the rally so nothing more than normal for some sideways movement now.