・Even though the price movement will be as per the scenario …
BCH / JPY Daily Bid Chart (created from DMM Bitcoin trading tool)
The figure above is a daily chart of BCH / JPY from November 2020 to the present.
BCH / JPY is currently in a reversal phase from the downtrend since May, and the current price has been hovering around 72,000 yen, which is about 23% of the decline.
The world’s first legal tenderization of BTC came into force in El Salvador on September 7, but the entire crypto asset market was marketed on the same day. BCH also dropped to the latest high of 87,000 yen, but it was sold to around 61,000 yen, which is a 23% drop level at one point.
BCH / JPY has become a form of being exposed to cold water, but what will happen to the price trend in the future? Consider future scenarios using Regisapoline and Dow theory.
In anticipation of future development, the important resistance support lines are the 75,000 yen line in (a) and the 45,000 yen line in (b) in the above figure. In addition, the trend line (c), which has served as a support many times in the past, should also be considered.
Looking at the above figure, it seems that the trend line (c) of the register support has changed and it has become a resistance band around the latest 9/6 high of 87,000 yen. What’s worse, it’s divided by the closing price without being supported by the horizontal line (a) of 75,000 yen, and I’m worried about the situation where it is still not recovering.
In addition, from a weekly perspective, the trend line (A), which connects the record high of 470,000 yen on December 20, 2017 and the high of 175,000 yen at the beginning of May 2021, and March 2020 The monthly low of 12,000 yen line (B) is easy to assume as an important line.
From a broad perspective, it can be said that we are currently in the triangle of the weekly trend line (A) and the horizon line (B).
The insights and interpretations of this article are by the author and do not necessarily reflect the views of Cointelegraph.
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