A short-term trading strategy for BCH/USDT based on the chart provided below:
1. Support and Resistance Levels:
- Support: Around $357.12
- Resistance: Around $365 (short-term), based on the recent highs.
2. Trend Analysis:
- Downtrend:$BCH is in a mild downtrend, but there is a potential bounce from support at $357.12, where the price has already rebounded slightly.
- The moving averages (MA 25 and MA 99) are slightly above the current price, acting as potential resistance.
3. Entry Strategy:
- Entry Point: If #BCH pulls back to the $357.12 support level again and holds, this could be a good entry point for a long position.
- Alternatively, if BCH breaks above the resistance level around $362 (MA 99), this would signal a potential breakout trade for a short-term rally.
4. Exit Strategy:
- Target Price: Set a short-term profit target at $365, which is a previous resistance level and aligns with the price where the downtrend started.
- Stop Loss: Set a stop loss below the $357 support (around $355) to minimize risk in case the price breaks down.
5. Volume Confirmation:
- Watch for increased volume near support ($357) or on the breakout of resistance ($362) to confirm price direction.
- If volume decreases during the move upward, it may indicate weakness, and you should consider exiting early.
- Buy near $357 with a stop loss at $355 and target $365.
- Alternatively, buy above $362 (breakout) and target $370 with a tighter stop loss below $360.
This strategy balances short-term risk with potential upward momentum, especially if BCH finds support and volume increases.
