Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the opinion of the author.
In 2022, Bitcoin Money shaped a variety and in Could, the value plunged beneath the vary lows because the crypto market skilled wave after wave of concern. The market construction was bearish, and the downtrend remained unbroken as we entered June. Technical indicators additionally pointed towards additional losses for Bitcoin Money.
A possible shorting alternative was recognized, and danger administration could be simply as vital as technical evaluation in getting into and managing such a commerce.
BCH- 12 Hour Chart
Supply: BCH/USDT on TradingView
On the H12 chart, it may be seen that the value slipped beneath the 2022 vary (white) that BCH shaped, with the lows and highs at $270 and $392 respectively.
BCH has shaped a sequence of decrease highs and decrease lows since then, as the extreme promoting stress of Could noticed BCH crash quickly beneath the $200 mark. Furthermore, the $200 mark is a crucial psychological stage of significance, and the value has dropped beneath each the $200 in addition to the $183 help stage.
BCH- 4 Hour Chart
Supply: BCH/USDT on TradingView
On the H4 chart, it may be seen that the pattern is certainly downward, with one of many newest decrease highs being on the $208.5 mark. As June was born, BCH appeared to interrupt above the earlier decrease excessive, however the surge to $212 was short-lived and appeared solely to be a liquidity hunt.
The $189-$190 space has served as help after which resistance over the previous two weeks, and therefore a retest of this stage may very well be an excellent entry for a brief place. The pattern was downward, and the descending channel’s higher boundary has a confluence with the next timeframe bearish order block.
Supply: BCH/USDT on TradingView
The H4 RSI has been beneath impartial 50 over the previous few days and bolstered the notion of bearish momentum behind BCH. The OBV has additionally been forming decrease highs and decrease lows for the reason that flip of the month.
On the identical time, the MACD additionally shaped a bearish crossover beneath the zero line, to additional strengthen the argument of the bears.
The promoting quantity, mixed with the momentum behind BCH, meant that additional lows had been possible the best way ahead for BCH.
Conclusion
A brief place entry will be taken at $190 on a bearish retest if it presents itself. A stop-loss above the bearish order block, within the neighborhood of the $210 mark, may present a adequate margin for error for such a brief place.
Beneath the $183 help stage, the following larger timeframe help is at $147. This stage has confluence with the channel lows as properly, making it a great take-profit goal.
