Bitcoin cash is bouncing after a thrust out of a triangle
|How Elliott Wave helped us to navigate the "Drop and Pop" Movement on BCHUSD?!
Bitcoin Cash with ticker BCHUSD is trading south for the last couple of months, but we want to focus on the intraday hourly chart in which we have spotted nice and clean pattern by Elliott wave theory.
At the end of April and beginning of May we were tracking a bearish running triangle formation within wave (iv) that was indicating for the final wave (v) before bounce and recovery. Triangle consists of five waves a-b-c-d-e and it’s a continuation pattern that usually occurs in 4th waves of an impulse and in B-waves of correction.
BCH/USD 1h chart from May 05
As you can see, after completing of a triangle within wave (iv), BCHUSD dropped yesterday on May 08 into final wave (v) towards projected target, from where we expected a rebound once a five-wave cycle of the lower degree fully unfolds.
BCH/USD 1h chart from May 08
And, today on May 09 we can see nice and sharp bounce, which suggests now at least a temporary support in place. Currently it seems to be unfolding a five-wave bullish impulse into first leg (a)/(i), so more gains can be seen for wave (c) or (iii) in upcoming days/weeks, just watch out for an intraday pullback in (b)/(ii).
BCH/USD 1h chart from May 09
Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.