BCHUSD is in an interesting position. We all have been talking about buying opportunities on the pair. The daily chart’s horizontal support and resistance levels suggest that the pair has been having a correction and it might head towards the North again. Let us have a look at the daily BCHUSD chart.
The Daily BCHUSD Chart
The level of 379.25 is the level of support and the level of 494.40 is the level of resistance of the correction. Since the price has been heading towards the North after having a bounce from the support level, there is still a possibility that it would go towards the North further and make an upside breakout. However, the daily chart below shows something else. Let us have a look at the daily chart again.
The Daily BCHUSD Chart with an Up Trending Trend Line
The chart shows that the price was up trending by obeying an up trending trend line. That was breached by the arrowed candle. This has made the calculation a bit complicated. A downside breakout at the support level of the correction would attract the sellers to sell off the pair. Let us have a look at the H4 chart to find out where the price might head towards to make the next breakout.
The H4 Chart
The H4 chart shows that the price had a rejection from the level of 435.15. In fact, an evening star has been formed and then it has been heading towards the South. If it continues to go towards the downside, then a downside breakout is very much on the card. That will eventually attract the sellers to sell off the pair basing on the H4 and the daily chart.
The Bottom Line
For the intraday BCHUSD traders, it is only short opportunities they should be looking for. For the H4 traders, they might wait a bit longer to have a downside H4 breakout. For the daily traders, it is time to keep watching how the daily candle closes.