Bitcoin Cash (BCHUSD) got it’s 5-up and 3-down to give us a great BUY opportunity earlier this week, but now it’s pulling back even harder! Is that bad?! Not necessarily… This is likely just a larger-degree 2nd wave off of a larger 1st wave than I originally charted.
With divergences forming and similar action in other cryptos and equities, I suspect that a major sentiment shift is upon us. However, breaking 260 could take us down into the original big picture pullback box, which honestly, wouldn’t make for too much more downside.
Link to Bitcoin Cash Chart in TradingView:
RED Primary Pattern (Replaces former PURPLE)
This has us in a smaller-degree 4th wave bounce before the final micro-5th wave takes us down into the blue box below 260.02. While this would mean we get a lower-low, I don’t see much more downside as the pattern already looks pretty complete and 186 is not too much farther down from the current levels on the bigger perspective.
GREEN Alt Pattern:
GREEN assumes that the low is now behind us and that we will complete a small 4-5 to give us a complete 5-wave impulse pattern up. Holding on to complete the 4-5 in such a manner would give BCH possibly the cleanest upside setup of any crypto! I’d be looking for a 3-wave pullback and a rally back over the top to sound the BUY alarms! However, breaking below 260 would immediately invalidate this GREEN pattern.
BUY Strategy:
BCH has retraced MORE than deep enough for us to call the pullback complete. Unlike most other cryptos, BCH is following a huge diagonal pattern over the long-term that started with the Dec 2018 crash. While deep 4th wave retraces are expected for diagonals, we’ve pulled back almost to the limit in BCH.
That said, it is time to start getting your buying plans ready! Be greedy when others are fearful! Now that is not to suggest you roll all of your life savings into Bitcoin Cash! Just as with any other altcoin, BCH is a high-risk, high-reward play. While it may outperform the field, it can just as easily go kaput and never recover (there are several altcoins that look like they’re going to collapse). Remember to DIVERSIFY! Love ALL the altcoins, not just BCH; don’t buy just 1, buy 7-8+!
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I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this video is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels.
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