Bitcoin' Cash tends to "range trade" then breakout or like we saw recently break down. We have pulled back to the 0.786 level of the overall run from October. The lines line up nicely with the Fibb retracements and appears to trade within these channels (similar to Dash) before breaking out to the upside with strong momentum. Now having trimmed off a lot of BCH' since our original position at $300 I would like to add some more for the longer term but where.
The orange line is where I would love to buy on a dip, but the market seems to be gaining some positive sentiment so we may not get there. However, I do not want to pull the trigger early in case we do pullback, or like we saw in September Bitcoin' rallies and the alt market does not. I also want to be in if we break to the upside, as Bitcoin' Cash makes very powerful moves when it does. I have two long term levels marked on my chart. Now these are preliminary and as the market matures we will start to see winners and losers so I want to start being picky going forwards and I'm looking at transaction as a guide to market penetration.
However horizontal trading gives us opportunity to trade between the lines. Preliminary I believe we will trade between $1700 and $2100 in the near term, so I am looking for a signal to buy over $1750 which I would trade for $2100 to add to my core position. We could also retrace back to the $1200 level where I am definitely a buyer as that is less than half of where I shaved some off.
Bottom line I'm hesitant on adding BCH' here as it is trapped between channels. I either want a new channel to form or see it trade within a previous channel. So I am being Patient here until the market provides better direction. I also want to see if Dash' starts to gain market penetration or worse for Bitcoin' Cash gets listed on Conbase. Yes I misspelled intentionally.
Your TA perspective on this is much appreciated - helps avoid emotional dumping (or adding!)
Can't help feeling things are a bit different now in 2018 with the involvement of futures and bigger institutions - I am sure there will be rallies, but the days of buying any coin and getting a 200% return seem to be a distant memory!