Bitcoin Cash Consolidation

Here we go, another Bitcoin Cash consolidation! Here are the trend lines and waves I'm looking for.

Major classical fibo level sits at $1243.59 and the edge of that fibo level extends down to $878.51. I'm looking for a buy at the max consolidation level around $560.39. We could trade as low as $292.26 which is a key fibo extension.

Ladies and gentleman, this could could trade as high as $7,000 USD after consolidation (you heard it here first).

I'll update this thread with long and short ideas as we go. But for now, the overall picture is bearish.

Note

Lots of questions about this idea...goood. I use a 1-2-3 strategy, which keeps me out of trouble. With this strategy I can choose either a "bottom buy" or a "breakout buy." If you've followed me, you'll see that with BCH I usually breakout buy because we've had trouble finding the bottom of the consolidation (see previous threads). SO I set pending orders and go from there. When I open a trade, I go all in ;)
Currently the chart looks like this:

Notice the red number counts. For me to open a long trade, I need to see the bottom of the descending channel, or a breach of that channel (we breached once before and I bought everything I could). To open a short trade you wanna be as close to the top descending channel line as possible. The characteristic behaviour of price action here is very volatile, unless the criteria I just noted about the strategy dont play out. I suspect, like previous BCH consolidations, it will muddy through the waters and not really go one way or the other. Since its in a descending channel, it will stagnate until it hits a strong fibo level to the downside. If we breach the bottom of the desending channel, I will buy and then sell before we get to a strong fibo resistance level (I'll wait for a rejection confirmations tho!).

Note

My analysis also includes looking at the BCHBTC chart, here it is, notice its in a descending channel:

Note

Nice rally, but i'm still bearish on BCH atm

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We have now broken the uptrend line in the BTC chart.

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I think it could retrace fully....

Broke the uptrend line in the USD chart.

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I'm not saying it will retrace fully, but I do think its going lower

Trader6127

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