BCHUSD - Technical Analysis November 1, 2017 - Current Price $491

BCHUSD

Bitcoin continues to break higher and surprisingly bitcoin cash followed it for a bit before pulling back.

Daily

On the daily time frame we can see that BCH managed to reclaim the pivot after turn the 30ema and 68 ema into support. The curl in moving averages suggests a bullish cross is underway. It is important to remember moving averages are a backward-looking indicator and tend to lag price. They extremely important areas of support however.

The stochastic RSI has created a wide divergence as it curls out of the downtrend. The RSI is only just reaching overbought and there is not enough chart data to full fill the MACD. The formation on the chart appears to be a bull flag breakout and the next area of resistance we look to should be R1, $539.90.

If the price pulls back the key level to hold is the pivot, $415.

4 hour

The previous high is a critical area to break above, approximately $520. The stochastic RSI is possible to curl back upwards, as we are observing the shorter term moving averages pushing above longer, and a break above the previous high would give way to r1, $543.

The RSI is as well getting close to being in overbought status and while it's trending upwards over the longer term, in the short term it may start a shorter term downtrend. If the price pulls back the 30ema will be a key level to hold.

1 hour

The current shorter term formation has taken the appearance of a bull flag but in a longer-term sense, there is a risk of a double top forming. So it becomes imperative for the price to print higher and then hold this level on any pullback.

The stochastic RSI can push into full uptrend as the MACD had a bullish cross with the RSI to trend higher. Volume has also climaxed and since waned during the bull flag formation.

Key moving averages to hold would be the 30 and 68ema.

Bullish Above: $522

Bearish Below: $469

RISK TRADE: Buy on a breakout of the bull flag, use stops in case it's a fake out.

Don't forget to use stop losses!!!

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