BCH or Bitcoin Cash is a fork of Bitcoin and had surged to the highs of $1450 during the crypto bull run. Now, it’s back to the $400 range.

Technically, we will only look to go long on crypto instruments.

- Market structure: After piercing the $700 region, the market structure became bearish. The next support stood at the $450 level, which market had previously tested 3 times. Hence, the strength of this support is questionable as usually, after 3- 4 touches, a level a breached. After this, we have a support at the region of $250-$300. This is where we will look for buys.

- Trendline: The ascending trendline, beginning from 23rd December 2020, was breached with force, validating the bearish pressure. Apart from this, there was another ascending trendline breach later on. When two trendlines are breached and validate the breakout sells- after opening and closing of candles below the trendlines- the confirmation for bearish leg is strong.

Later on, BCH attempted to break the descending trendline, which it failed to do so.

- Retracement: BCH has broken the 75%-78.6% retracement level, sliding to the 100% level which confluences with the support, we plan to go long at. The 100% level denotes a double bottom at the support. This gives us three confirmations to go long at the level.

- EMA's: Both EMA’s are bearish. BCH is at the verge of EMA death cross. After the EMA 200 break, BCH still hasn’t tested the moving average. We do analyze a retest on the EMA before further sliding down. If market comes to our level of $250 before retesting, that further confirms a move up to retest the EMA 200.

- RSI/CCI: Both oscillators are bearish. RSI representing the 34 level region and CCI -100 level region respectively. The over-sold conditions are little below where the oscillators currently stand. Anticipation is, when market has reached the $250-$300 support region, oscillators will be in the over-sold conditions.

Bitcoin cash has 4 confirmations to go long at the suggested level. We have support, retracement level 100%, double bottom and oscillators probably bottoming out to the over-sold region.

Our target will be the previous highs once the trade is positioned.

BITCOIN CASH buying region of $250-300

Jul 18 2021