BCH/USD Medium-term Trend: Bullish
Supply zones: $1000, $1100, $1200
Demand zones: $600, $500, $400
BCHUSD is still in a bullish trend in the medium term outlook. The strong bullish pressure was sustained as price was up $877.82 in the supply area after the formation of gravestone doji.
The spinning top formation is a reversal pattern which implies a minor pullback may occur as the cryptocurrency set for another high. The pullback is necessary for the market correction for upward trend continuation.
The Fibonacci retracement shows price is in the 23.6 fib level. The bears may further push price to the 38.1. The 23.6 and 38.2 are trend continuation zones. It implies that the bulls may stage a come back around this level. Moreover, the 10-day EMA could also be a strong support for the bull's momentum at the demand area.
Price is above the two EMAs which is a reflection of the bullish pressure hence the bulls will sustain the north journey in the medium-term outlook.
BCH/USD Short-term Trend: Ranging
The cryptocurrency is ranging in the short-term outlook. The bullish pressure continued at the opening of the market as the cryptocurrency was up $877.90 in the supply area.
This resulted in the formation of the double top a reversal pattern. The bearish railway track was a further confirmation to the bears' return. Price was pushed down, below the 10-day EMA initially at $850.36 in the demand area.
BCHUSD is consolidation and trading between $875.96 in the supply area of the upper price range and at $820.84 in the demand area of the lower price range. Traders should wait for either a breakout at the upper range or a breakdown at the lower range before flowing with the trend.
The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.