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.

Ross J Burland FXStreet

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.

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

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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