. Current Context $BCH
- Current Price: $358.2 (-5.34%), close to the 24h low ($357.7).
- RSI(6):21.5 (extreme oversold), signaling possible exhaustion of the decline.
2. Key Points for a Long Trade:
Supports and Resistances:
- Immediate Support: $357.7 (24h low).
- Resistances:
- $360.3 (EMA(99) and EMA(9)).
- $364.1 (EMA(25)).
- $383.3 (24h high).
Indicators:
- RSI(6):21.5 (oversold condition, but requires confirmation of reversal).
- Volume: Reduction in current volume (33.35k vs. MA(5) of 912k) suggests caution.
3. Suggested Strategy:
Entry:
- Ideal Zone:$357.7 - $358.2 (test of the 24h support).
- Confirmation Needed:
- Reversal candlestick (e.g., hammer or bullish engulfing).
- Increase in volume on the rise.
Stop Loss (SL):
- $355.0 (below the 24h support, limiting risk to 0.9%).
Take Profit (TP):
- TP1: $360.3 (EMA(99) and EMA(9) - +0.6%).
- TP2:$364.1 (EMA(25) - +1.6%).
- TP3:$375.0 (50% of the daily range - +4.7%).
- TP4:$383.3 (24h high - +7%).
4. Risks and Observations:
- Risk Scenario:
- Lack of reversal confirmation may lead to a continuation of the decline.
- Low volume indicates a lack of interest from buyers.
- Management:
- Allocate only 1-2% of capital to avoid excessive exposure.
- Monitor the RSI: if it rises above 30, it validates buying strength.
Risk/Return Ratio (TP3 vs. SL):
- Risk: -0.9% ($355).
- Return: +4.7% ($375).
- Ratio: 5:1 (attractive if the reversal is confirmed).
5. Conclusion:
The long trade is viable, but conditional. Enter only with confirmation of reversal (chart pattern + volume). Use SL at $355** and staggered TP up to $383.3.
6. Observations
The multi-TP strategy on BCH reflects an adaptation to its less volatile nature. While the slowness reduces the risk of sharp declines, it also limits significant gains. Therefore, traders use staggered TPs to balance profitability and safety. In such markets, strict risk management and detailed technical analysis are essential!
