Bitshares/Bitcoin: Long-Term Buy
Bitshares/Bitcoin, Daily Chart Analysis
We have been monitoring the correction in the coin for the past three weeks, and now Bitshares is on the verge of breaking the declining trendline that has been dominating the move. The currency is one of the first smaller coins to show strength since last week’s move and we expect at least a break-out above 0.00010 and test of the 0.00012 level (where we would reduce the initial position) in the coming period, with a possible move to 0.00014 and a test of the highs below 0.00018. The MACD seems to be forming a bottom near the 0 level, pointing to a resumption of the advancing trend. Stop losses could be set slightly below the 0.00008 level compared to Bitcoin.
We advise relatively small positions in the coin given the volatility in the smaller coins, and the wide stop-loss, with the still correction ETH and BTC also creating a risk of a more consolidation. That said the risk reward ratio looks attractive and long-term investors should add to their positions if the coin re-tests the 0.00008 level (which coincides with the 61.2% Fibonacci retracement of the recent move) in the coming days. The coin could be a good buying opportunity compared to the USD, where we expect an initial rally above the $0.30 level.
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