- BCH/BTC is trading on the bid within a bullish 4-hour trading environment,
- Daily W-formation offers a bullish bias following the 61.8% correction.
Further to the prior analysis, BCH/BTC Price Analysis: Daily upside extension in the making, the price action, as expected, is teeing-up for a bullish outcome.
The following outlines the prospects for the set-up from a swing-trading perspective.
The W-formation was completed on a retest of the neckline in a full 61.8% Fibonacci retracement.
The prospects from here are now bullish for an extension to the upside.
The 4-hour chart can be used to identify an optimal entry point and stop loss.
As illustrated, with MACD in positive territory, if bulls are not already engaged, a pullback to the last high and confluence of the bullish 20 EMA would offer a discount for a 1:3.5 risk to reward set-up.
The stop-loss can be placed below the structure.
Author: Ross J Burland