Bitcoin cash rebound nears critical levels
Bitcoin Cash has seen a nice recovery over the last two months of more than 40%, but notice that the move from 443 is still clearly overlapping, so it can still be wave B as part of a larger A-B-C correction, with a flat also a possible scenario. This means we should be aware of limited upside and a potential reversal lower, possibly even from current levels. Especially if price drops below the 529 level, there is a real chance the market will retest the lower side of the September–October range.
In expanded flats, price can even move towards the 123.6% projection of wave A, which in this case comes in around 700. That makes 700 an important upside level to watch, but only if price first breaks above 651, which for now remains capped. But on o the daily chart, however, there is a developing bullish structure with wave two possibly in place, but the overall setup is still unclear and suggests that the correction is not finished yet.
Big picture
Five waves up from the lows into a higher degree wave "I" confirms the bullish trend on the weekly chart, so after recent projected corrective setback in wave "II", we can expect more upside for wave III.
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Author
Gregor Horvat
Wavetraders
Experience Grega is based in Slovenia and has been in the Forex market since 2003.
