BCH/BTC Price Analysis: Bulls on board with the W-formation

  • 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 analysisBCH/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. 

Daily chart

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

Read more at: https://www.fxstreet.com/cryptocurrencies/news/bch-btc-price-analysis-bulls-on-board-with-the-w-formation-202101190006

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