Bitcoin Cash: A short position entry can be taken at $190 with stop-loss above…
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the opinion of the author.
In 2022, Bitcoin Money shaped a spread and in Could, the value plunged beneath the vary lows because the crypto market skilled wave after wave of worry. The market construction was bearish, and the downtrend remained unbroken as we entered June. Technical indicators additionally pointed towards additional losses for Bitcoin Money.
A possible shorting alternative was recognized, and danger administration could be simply as essential as technical evaluation in coming into and managing such a commerce.
BCH- 12 Hour Chart
On the H12 chart, it may be seen that the value slipped beneath the 2022 vary (white) that BCH shaped, with the lows and highs at $270 and $392 respectively.
BCH has shaped a collection of decrease highs and decrease lows since then, as the extraordinary promoting strain of Could noticed BCH crash quickly beneath the $200 mark. Furthermore, the $200 mark is a vital psychological stage of significance, and the value has dropped beneath each the $200 in addition to the $183 assist stage.
BCH- 4 Hour Chart
On the H4 chart, it may be seen that the pattern is certainly downward, with one of many newest decrease highs being on the $208.5 mark. As June was born, BCH appeared to interrupt above the earlier decrease excessive, however the surge to $212 was short-lived and appeared solely to be a liquidity hunt.
The $189-$190 space has served as assist after which resistance over the previous two weeks, and therefore a retest of this stage could possibly be a great entry for a brief place. The pattern was downward, and the descending channel’s higher boundary has a confluence with a better timeframe bearish order block.
The H4 RSI has been under impartial 50 over the previous few days and strengthened the notion of bearish momentum behind BCH. The OBV has additionally been forming decrease highs and decrease lows for the reason that flip of the month.
On the identical time, the MACD additionally shaped a bearish crossover beneath the zero line, to additional strengthen the argument of the bears.
The promoting quantity, mixed with the momentum behind BCH, meant that additional lows had been seemingly the best way ahead for BCH.
A brief place entry will be taken at $190 on a bearish retest if it presents itself. A stop-loss above the bearish order block, within the neighborhood of the $210 mark, may present a ample margin for error for such a brief place.
Beneath the $183 assist stage, the following larger timeframe assist is at $147. This stage has confluence with the channel lows as effectively, making it a perfect take-profit goal.