BCHUSD

BCHUSD

PAIR:BCHUSD

After lossing 51% drop down to 946usd, price is consolidating within 1008usd down to 960usd.To determine the price move if it is a continuous bearish trend or a bullish reversal, a chart pattern will be used only called THE INVERTED HEAD and SHOULDERS.
As it is commonly used among trader, the inverted HEAD and SHOULDERS pattern is a reliable chart pattern that has a hight rate of success in outbreak( but mostly takes time to be completed on higher time frame.
On the daily time frame, the BCHUSD chart is currently showing an uncompleted head and shoulders pattern in which the LEFT SHOULDER has been completed dropping down below the 0.236fibonacci retracement level but closed at exactly the 0.236fibonacci retracement level.
While the head is the lower part of the fib and the last shoulder which is the RIGHT SHOULDER is expected to touch or reverse right at the 0.236fibonacci level.
Price trend Downward leading to the pattern,the Shape should look like a 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided.
The two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow).
The right shoulder should be completed by moving back up to meet the neckline(green zone.
more confirmation on the volume as well,Highest on the left shoulder or head, diminished on the right shoulder. Trends downward 66% of the time.
The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward.

Technicals suggest that a it is currently bearish, until it is fully bullish after a confirmation of it moving back to 1500usd.

VERDICT:

BUY: 1200usd up to 1500usd

SELL: 2000usd up to 3000usd

STOP LOSS: 779usd

Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.

$COV HODL

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