BCHUSD (Bitcoin cash) hit a high of ~$3930 on Dec. 20, 2017 after which it sold off. A bearish trend line is used on the chart to indicate the bearish move in price of BCHUSD ever since. Price action can be seen to form a V-bottom (bullish signal) on Feb. 6, 2018 from where price went on to break the bearish trendline on the 4hr tf on Feb. 14, 2018, which is a sign of a resumption of a bullish trend, even if temporary.
In addition, BCHUSD (Bitcoin cash) also seems to be currently forming an inverted Head and Shoulders pattern or (Head and shoulders bottom). I have drawn the neckline on the chart. Price needs to close above the neckline (close above ~ $1,290.76) for the Head and shoulders bottom to confirm. The Head and shoulders bottom is ideally a bottom reversal pattern but it can also show up as a continuation pattern which I suspect it is in this case.
The range for the target area is between $1,918.18 and $2,102.72
A close above the neckline (close above ~ $1,290.76) can be used to initiate a long position with a stop loss placed just above support area 1 (i.e. ~$1,198.50). The bottom range of the Target area can be used to take profit for example. Using this ideal scenario, risk on the trade = $1,291 – $ 1,198.50 = $92.50
Reward = $1,918.18 (bottom of Target area) – $1,291 = $627.18
Risk/reward ratio = ~ 6.7:1
Failure of BCHUSD to resume its uptrend and closure below Support area 1 (between $1,130 and $1,190.52) does suggest that Support area 2 (between $999.49 and $904.91) will be tested before another bullish move can be sustained in BCHUSD, even if temporary.