Bulls aboard the W formation.

  • BCH / BTC is trading on a bid within a bullish 4 hour trading environment,
  • The daily W formation offers bullish trend following the 61.8% correction.

Further to the previous analysis, BCH / BTC Price Analysis: A daily upside down in the making, the price action, as expected, teases for a bullish result.

The following outlines the prospects for set-up in terms of swing trading.

Daily chart

The W formation was completed on a re-test of the neckline in a full 61.8% Fibonacci gable.

Forecasts from here are now bullish for an upside down extension.

The 4 hour chart can be used to identify the optimal entry point and prevent loss.

As shown, with MACD in positive territory, if bulls are not already employed, a withdrawal to the final high and confluence of the bullish EMA 20 would offer a 1: 3.5 risk reduction to reward set-up.

The stop-loss can be placed under the structure.

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