Crypto Update: Trade Setups for Bitcoin Cash and 0x
In the last two months, numerous altcoin pairs managed to put a stop to the bleeding in the crypto markets. Some of these pairs shed as much as 90% of their value from this year’s high. Ironically, the extreme plummet was one of the main catalysts that helped them carve a bottom.
Many altcoins became so dirt cheap that they attracted bargain hunters and bottom pickers. These buyers displayed savviness and experience as they bought near historic support levels. As a result, cryptos such as Ripple (XRP/USD), Stellar (XLM/USD) and Monero (XMR/USD) came to life and broke out of patterns that have kept them bearish for most of 2018.
We’re seeing the same conditions appearing in Bitcoin Cash (BCH/USD) and 0x (ZRX/USD). In this article, we reveal the monster trade setups for Bitcoin Cash and 0x.
Bitcoin Cash Analysis
BCH/USD dropped to as low as $407.90 on September 19, 2018. At that price level, the market lost over 86% of its value from this year’s peak of $2,960. This is a nightmare situation for those who bought at the top. If you’re in this position, I’m sure you’d want to wake up and hope this is nothing but a bad dream.
The good news is that the market’s long slumber is about to end. This is very likely as we’re seeing the same variables that enabled Ripple and the others to carve a bottom.
Daily chart of BCH/USD
The daily chart shows that Bitcoin Cash is getting a lot of demand at the key support area of $400 – $500. This price range must be extremely cheap for market participants as they bought tons of positions on September 26 and 27. On each of these days, volume surged by over 300% of its daily average.
On top of that, the market is also close to the apex of the large falling wedge on the daily chart. Bitcoin Cash is looking to make a big move. We’re predicting that the big move will come once it torches RSI resistance of 60.
Almost 80% of 0x’s market value from the 52-week high of $2.0798 was wiped out on September 12, 2018. On that day, the pair dropped to as low as $0.454. While this type of loss can shatter the confidence of retail investors and day traders, bottom fishers knew the drop provided a profitable trading opportunity.
Daily chart of ZRX/USD
A look at the daily chart shows that $0.50 is a historic support level for 0x. In addition, the market was oversold on September 12. The thinning supply plus the increased demand at a key support area is a very probable formula for a rally in crypto markets. It worked for 0x as it climbed to as high as 0.7943 on October 7.
If you missed this boat, don’t worry because we’re confident you’ll get another shot. 0x might be due for one last leg down before it breaks out of the large descending triangle. If and when it does breakout, 0x can potentially triple its value from its historic support.
We can see the same conditions that ignited bullish breakouts in Ripple, Monero, and Stellar brewing in Bitcoin Cash and 0x. It’s only a matter of time before these two cryptos break out of their bearish patterns. The intense buying at key support areas plus oversold conditions should enable Bitcoin Cash and 0x to stop the bleeding and start monster bull runs.