2018-11-6 08:11 |
BCH/USD Medium-term Trend: Bearish
Supply zones: $700, $800, $900
Demand zones: $300, $200, $100
BCH is in a bearish trend in its medium-term outlook. Yesterday larger bearish engulfing 4-hour opening candle at $570.0 showed bearish exhaustion as it closes with a wick. This led to the bulls returned and pushed the cryptocurrency up the second time into the critical supply zone as BCHUSD made a lower high of the day at $584.20.
The bulls lost momentum for upward price movement as the candle closes as bearish pinbar. Price was down to $545.20 in the demand area above the 10-EMA.
Today's 4-hour opening candle at $546.00 was a bearish spinning top an indication of possible trend reversal that will be determined by the current candle that is forming. Should it close bearish, it will imply a resumption of the journey down south while a close as a bullish candle will suggest that the bulls may push price higher and break the critical supply area.
Price is above the two EMAs and the stochastic oscillator is at 74% and its signal points down which suggest downward price movement in the medium-term.
BCH/USD Short-term Trend: BearishThe cryptocurrency is in a bearish trend in its short-term outlook. The bear pressure that dropped BCHUSD to $545.8 in the demand area created a double bottom formation for a the bullish price movement.
Price may get to $590.00 in the supply area before the bears stage a strong comeback that will drop BCHUSD initially to $500.00 in the demand area.
Currently, price is around the 10-EMAs as bearish railroad formation is seen at $565.00 with the stochastic oscillator at 37% and its signal not define.
Traders should be patient and allow a minor push to the upside followed by a bearish candle to confirm the bears take over before taking a position.
The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.
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