Bitcoin Cash Analysis - Breaking the Box Ceiling and Continuing 💹 Let's dive into this cryptocurrency and examine our entry and exit points for trading and profit-taking.
🌟 We have a new program on this channel, in addition to daily analyses, from Monday to Wednesday:
Bitcoin and its dominance analysis on Monday
Ethereum and ETHBTC analysis on Tuesday
Gold analysis on Wednesday
I hope these bring you significant profits.
📊 Weekly Time Frame:
After breaking out of a weekly box where we oscillated for around 350 days, we began our upward movement by surpassing the resistance at 140.2.
During this upward trend, the volume decreased during corrective phases and increased as the trend resumed, indicating a strong bullish formation.
💡 It's crucial to understand the significance of boxes in higher time frames before analyzing the daily time frame. If you’ve noticed, most coins are still ranging within their long-term boxes. However, breaking out of these boxes can initiate a new trend. Some coins to watch for such breakouts include SOLANA, LINK, BCH, ETH, and ICP. Paying attention to weekly box breakouts is highly recommended.
⏰ Daily Time Frame:
In the daily time frame, after repeatedly hitting the 281.5 resistance and seeing a reduction in sell orders, we broke out of the box ceiling and continued our higher time frame movement. One of the indicators for this was the significantly reduced volume within the box.
📆 Post the 281.5 breakout, we moved towards the 709.4 resistance. After failing to continue the upward movement, the buying pressure decreased, and selling pressure increased. Currently, we are ranging between 521.8 and 423.6.
📉 Four-Hour Time Frame:
In the four-hour time frame, following a significant market correction, we failed to resume the upward movement, resulting in a ranging market.
🏦 This time, after getting rejected from the 521.8 ceiling, we only dropped to 450.2 and didn’t reach the box floor. This indicates two things: the absence of sellers to push the price to the box floor and the presence of buyers preventing the price from dropping further, both suggesting a bullish sign.
📈 Long Position: Wait for a breakout above the 521.8 resistance. Given the bullish higher time frame, we can enter a long position in line with the trend.
📉 Short Position: Either wait for a strong rejection candle or for a trend change with a lower high and lower low formation.
🔑 We also have a parabolic-like trend line, but since we are currently within the box, we won’t analyze patterns yet. However, if we break out of the box, this could help us.
📌 Support Levels: 500.7, 474.8, 444.2
📌 Resistance Levels: 521.8, 562.0, 605.9
🛡️ As the week comes to an end, I hope you’ve had a profitable week and wish you a great weekend ahead. Enjoy your rest and start the new week with renewed energy and enthusiasm!
😊 If you'd like me to analyze a specific coin or currency pair, be sure to comment so that I can allocate the next analysis for you!
⚠️ Also, please remember that I'm just an analyst, and this isn't financial advice. We're here to stay in the market and maximize profits by adhering to risk and capital management principles.
