John Todorov, senior trader at dagx.live, said that Bitcoin Cash (BCH) has been clinging to the 20-day EMA for the past few days. Todorov thinks that we should soon see a large range move either to the upside or to the downside. A breakout and close (UTC time frame) above the 20-day EMA can carry the price to $451 and above it to the resistance line of the ascending channel.
On the other hand, if the BCH/USD pair turns down and breaks below the 50-day SMA, it can correct to the support line of the channel. John Todorov from dagx.live anticipate strong buying at this level. If the price rebounds sharply from it, we might suggest a long position. The stop loss can be kept just below the channel. However, if the pair plunges below the channel, it will turn negative and can drop to $280.
One of the John Todorov’s favourite coins, EOS is finding support at the 50-day SMA, which is sloping up and is facing resistance at the 20-day EMA, which has started to turn down. This shows that volatility is tightening. Todorov from dagx.live thinks that we should soon see the volatility expand. However, it is difficult to predict the direction of the expansion. Hence, we can not take any predetermined action.
If volatility expands to the upside and the EOS/USD pair climbs above the 20-day EMA and $6.8299, it can move up to the resistance line of the channel and above it to $8.6503. As the risk to reward ratio of this trade is attractive, we maintain the buy proposed in an earlier analysis.
On the other hand, if the bears sink the pair below the 50-day SMA, it can drop to the support line of the channel. If this breaks down, a fall to $4.4930 is probable.