Trade Recommendation: Bitcoin Cash (BCH)
Our June 5, 2019 trade recommendation for Bitcoin Cash (BCH/USD) hit its target. On June 22nd, the market climbed as high as $517.75. Those who followed the trade plan grew their investments by over 39% in about three weeks.
Bitcoin Cash immediately corrected after hitting our price target. This is favorable to us because we can catch the dip and profit on the next leg up. Fortunately, the cryptocurrency is giving us strong signals that it will continue its current bullish trend.
Technical analysis shows that BCH/USD has taken out key resistance of $400 on June 13th. This triggered the breakout from the large rounding bottom pattern on the daily chart. The breakout ignited a rally that saw the market climb as high as $517 on June 22nd.
While the market retraced, bulls are retesting $400 as support. Should the support hold, it will signify a strong bullish signal because it would indicate that the cryptocurrency has elevated its trading range. On top of that, Bitcoin Cash continues to respect the diagonal support. The uptrend line is driving the market to our range high of $650.
The strategy is to buy at current prices of around $400. If bulls can stay above this level, they will likely generate a rally to our target of $650.
The process may take a month.
Daily Chart of Bitcoin Cash/US Dollar on Coinbase
Summary of Strategy
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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