Bitcoin cash is a fork of the Bitcoin. In November 2018, Bitcoin Cash split further into two cryptocurrencies: Bitcoin Cash and Bitcoin SV.

- Market structure: Bitcoin cash has been in a bull run after touching the support level at $400. The candles continued to appear bullish. BCH is a littlie below the resistance level at $720. At this level, we won’t be going long as its risky to go long at a resistance level. We will wait for a retracement to follow along our bullish trade plan.

- Trendline: There was a descending trendline, which was breached. The breakout buy validation was solidified after candles closed and opened above the trendline and the retested the support from where it started moving up.

- Retracement: The golden retracement level of 75-78.6% aligns with the support level and is at a price point of $470. This area is in confluence with two factors plus the added factor of trendline breakout buy.

- EMA's: Both EMA’s are bullish at the moment. Earlier, both EMA’s were in a close proximity to incur a bearish death cross, but after totally converging with each other, the EMA’s started to divert, remaining intact in the bullish death cross. BCH just broke the EMA’s and has to retest. The retest might not occur at the support level. Therefore, we will avoid going bullish at the retest of only one EMA if it’s not at the support level.

- RSI/CCI: Oscillators bounced back after tapping their over-bought regions. Currently, RSI is at 70 and CCI at 143. Both of them are near their over-bought regions, which makes it risky to buy right now. Therefore, we have to wait for the oscillators to neutralize their levels in alignment with the support level with other factors.

BCH is a decent long setup from the $470 level. When the bull market initiates in the crypto space, the alts move accordingly. We will monetize on the movement of BCH once it taps our support level.

Bitcoin cash to retrace for buys

Aug 15 2021

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