Chart of the day

Bitcoin Cash has finished the long-term five waves down and is breaking above 212 for a third upside wave in the reversal of five waves to the upside. A confirmed break above 221 in the coming days is required to validate this scenario.

This is viewed as the finish of the long-term wave cycle. If we get a confirmed break above 221 that would confirm that the five downside waves are finished and we should be in a reversal higher cycle and the most promising third wave which is the most violent and longest.

Long trades you can open here with a stop loss below 210. We favor the long trade entries at this stage as we see strong support after the long-term five waves down and a break above the falling wedge indicates a bullish price action reversal. It is a time to build a buying position.