Crypto Price Analysis: NEM and Ethereum Classic Ripe for Bottom Picking
Legendary investor Baron Rothschild once said, “the time to buy is when there’s blood in the streets.” While this quote may not make sense to new traders, many know that buying the generational bottom can give you the opportunity to skyrocket your net worth in a relatively short period of time. Nevertheless, it is not as easy as it sounds.
Most market participants, including the seasoned ones, dread buying the absolute bottom. That’s because even if the setup looks right, many dare not push the button due to the fear of more possible downside potential. In this article, you will likely encounter similar emotions.
NEM (XEM/BTC) and Ethereum Classic (ETH/BTC) are trading at historical support levels. We’ll show technical evidence to suggest why both are ripe for bottom picking. It is up to you whether you enter the market or not.
A look at the longer timeframe shows that NEM is giving bargain hunters and position traders a chance to buy the possible generational bottom.
The market dropped to as low as 0.00001 on February 6, 2019. At that point, the market was down by over 92% from the bull market high of 0.0001392, which was posted in January 2018. The plummet tells us that NEM has given up all of its gains from the 2018 parabolic run. It is now in a position to start a new market cycle.
The good news is that NEM is now trading at near its historical support. More importantly, it appears to be respecting it. The price action comes as the market finally breached the diagonal resistance of its weekly RSI. This diagonal resistance has kept NEM from discovering higher prices for over a year and a half.
With the RSI breakout, NEM can gather to momentum to stop the bleeding and establish a bear market bottom. It appears that market participants are reacting favorably.
XEM/BTC Daily Chart
Volume is on the up and up, which means demand for market at current levels is growing. As a result, NEM took out immediate resistance of 0.000012 and flipped it into support.
With NEM trading near its historical support and showing signs of demand, the market looks ripe for bottom picking.
Another market that looks ripe for bottom picking is Ethereum Classic. Just like NEM, Ethereum Classic has given up all of its gains from the 2017 bull run. It is now trading at its historical support. This means that the market is in a good position to shift from distribution (selldown) to accumulation (base building).
To echo this sentiment, Ethereum Classic appears to be painting a large falling wedge on the weekly chart. The market is actually trading near the apex of the wedge. With the historical support keeping the price stable plus the weekly RSI finally taking out the diagonal resistance, we won’t be surprised if Ethereum Classic makes a bullish move in the coming weeks.
Weekly chart of ETC/BTC
For now, however, we believe that Ethereum Classic will continue to build its base at dirt cheap prices. This can be your opportunity to purchase positions at a steep discount before it is likely to start showing bullish signals.
Both NEM and Ethereum Classic are trading at historical support levels, which makes them ideal for bottom-picking. Nevertheless, the lack of bullish signals can make it difficult for a retail trader to long the market. Even when presented with technical evidence that the bottom might be in for these two altcoins, buying “when there’s blood on the streets” is not as easy as it sounds. Those who do, however, may give themselves the opportunity to significantly increase their net worth.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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