BCHUSD has produced four consecutive daily bearish candles. The price seems to have found a level of support where it had a bounce earlier. Today’s intraday price action has been bullish. The daily chart also shows that the price might end up producing a double bottom if a daily candle makes a breakout at the level of resistance which might be the neckline level of the double top. Let us have a look at the daily BCHUSD chart.
The Daily Chart
The level of 281.03 is the level of support where the price had a bounce twice. The level of 342.85 is the level of resistance here which is considered the neckline of the potential double bottom. A daily breakout at the neckline would attract the daily traders to go long on BCHUSD in coming days.
Let’s flip over to the H4 chart.
The H4 Chart
The H4 price action has been choppy lately. The last bearish wave did not have good momentum on its way to the South. After having a bounce and producing an H4 bullish engulfing candle at the level of 281.03, the price has been heading towards the North. However, buying momentum has not been that strong. Thus, buyers might have to flip over to the intraday charts to find long entries.
The Bottom Line
All the Cryptocurrencies have been choppy lately. This suggests that the prices are having corrections on the big time frames such as the weekly or monthly chart. This is a delicate situation which must be dealt with extra caution by the traders. Trading is all about being patient and taking the right decision at the right time. ‘The right time’ does not come very often. It rather makes traders wait. The way cryptocurrencies have been moving lately, it can be said that they have been testing the patience of traders and making them wait.