On the daily chart, Bitcoin Cash (BCH) is trading below the 200-day moving average and below the 21 SMA. Please be aware that a bearish pressure line is projected from October 21 and the BCH has not been able to break it more than 3 times.
As long as the crypto remains below 604.98, we expect a bearish move to 2/8 of a murray. BCH could fall to the psychological level of 500 which coincides with the uptrend channel formed since July 20.
On October 27, BCH fell to the 1/8 murray support around 531.25. After this point, it managed to bounce back to the 200 EMA level. It has been testing this zone for more than 5 days, trying to consolidate above, but with no success. This level has now become strong resistance for Bitcoin cash, a daily close above this 20-day average could be the beginning of a new bullish scenario with targets at 656 (5/8) and up to 687 (6/8).
If in the coming days, BCH consolidates above the 21 SMA and 200 EMA, this would mean that long-term investors have probably taken advantage of the drop to accumulate. It would give BCH strong bullish momentum and push it towards its annual high of 1639.
Our trading plan is to continue selling below 593, where the EMA of 200 is located. Our targets will be 562 and 531. On the other hand, if in the next few days BCH consolidates above 604, we should avoid selling. Therefore, we should wait for the buy signal with targets at 625 and 654.
The eagle indicator is showing a slightly bullish signal. We could confirm this signal when BCH breaks the level of 604, then it will be an opportunity to buy.
Support and Resistance Levels for November 02 - 03, 2021
Resistance (3) 625,00
Resistance (2) 608,33
Resistance (1) 596,16
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Support (1) 566,29
Support (2) 554,12
Support (3) 543,61
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A trading tip for Bitcoin Cash for November 02 - 03, 2021
Sell below 593,75 (EMA 200) with take profit at 562,50 (2/8) and 531,25 (1/8), stop loss above 604,50.
The material has been provided by InstaForex Company - www.instaforex.com