Initiating a Long For Bitcoin Cash
For a comprehensive list of our trades, please follow the link below:https://docs.google.com/spreadsheets/d/114kRO9YMOdm-CZeWm-buOSSieoVPoUS-6_6RfPVCzyE/edit#gid=0
Today, we will be looking to initiate another trade for Bitcoin Cash.
We are looking to enter the trade somewhere in the low $300s with a target close to $400.
Since our short was closed at $320, this can be used as the entry for the new long.
If you missed that short, an outline of how to proceed is given below.


BCH | Lower Risk | Higher Risk |
Entry | $320 | $310 |
Target | $390 | $390 |
Stop-Loss | $299 | $299 |
Risk-Reward | 3.5 | 6.77 |
Money Management
In our trades, we will follow a rule stating that we cannot risk more than 2% of our total portfolio in a trade. We will be doing this trade with 3% of our total portfolio. In an account of $10,000, this would mean a total of $300. 0.95 BCH will be bought at an entry of $315. We chose $315 as our entry point since it is the average of our two entry points at $310 and $320 respectively. We will be risking 0.116% of our portfolio. With the same account total, this amounts to $11.6 The Risk/Reward ratio in this trade (5) is above average. The reason for not placing more capital in this trade is mostly because BTC is in a precarious position. It seems as if BTC is either beginning a new uptrend or is giving its final upward bounce before the price continues its downtrend. In both scenarios (rapid increase/rapid decrease) the price of BCH would likely fall. Therefore, since volatility is returning to BTC, I would preach caution when initiating a trade with any other alternate coin. Now, for those of you who do not know how to place a conditional trade with a stop loss, a simple guide is given below.
Trade Analysis
The main reason for initiating this trade is given by the use of the Fibonacci retracement tool and the daily moving averages (MA).- March 15
- May 9
- June 19
- August 1


Previous BCH Trade
July 16 – Closing The Short
The price has reached our target of $325. Therefore, we will close the trade. If the trade was initiated with 5% of your portfolio, this would have presented a 1.5% increase on your total portfolio and a $150 profit. The final target represented a profit of 35%.July 1 – Short Update
The price is currently trading near $400. This is also a minor support area. It is currently in the process of making a double bottom. Even though this price is still quite far away from our original target, it would still be a good position to take some profit.
June 25: Initiating a Short
At the current price, I do not think that this could be a very profitable trade setup. This is mostly because the price in in an ascending wedge. While the wedge is a bearish pattern, it has an ascending resistance line.
Money Management
In our trades, we will follow a rule stating that we cannot risk more than 2% of our total portfolio in a trade. Therefore, since the stop loss presented above is slightly lower than 4%, it is possible to initiate this trade with more than 50% of your portfolio without breaking the rule. However, that is not recommended, mostly because the underlying trend is bearish. We will be doing this trade with 5% of our total portfolio. In an account of $10,000, this would mean a total of $500. 1 BCH would be sold at an entry price of $507. We will be risking 0.191% of our portfolio. With the same account total, this amounts to $19.1. The risk to reward on this trade is quite attractive. Therefore, based on your preference this trade can be done with more equity. However, since the current underlying trend is quite bullish, I do not like to bet against it. I would quite comfortably allocate more than 10% of the total portfolio to this trade if it was a bullish descending wedge instead, or the BTC trend was bearish. However, that is not true, so we will allocate the current percentage.Simple | Advanced | |
Entry Point | $507 | 1/3 X $497 1/3 * $507 1/3 * 517 |
Target | $326 | $326 |
Stop-Loss | $525.1 | 1/3 $520.1 1/3 $525.1 1/3 $530.1 |
Risk: Reward | 1:10 | 1:10 |
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile. Images are courtesy of Shutterstock, TradingView.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored