Crypto Update: TRON/Bitcoin Looks Ready to Make a Splash
The TRON/Bitcoin pair (TRX/BTC) may be down by over 80% from the 2018 high of 0.00002047. If you’ve been following our crypto updates, you would have known by now that such heavy losses can be the catalyst of a trend reversal. This actually makes sense from the perspective of a whale. You force or wait for the market to become ridiculously cheap. You then come in and accumulate positions at the bottom.
Sounds like a viable formula to grow your investments really quick. We’ve seen this modus on other altcoin pairs like Ripple/Bitcoin (XRP/BTC) and Monero/Bitcoin (XMR/BTC). It looks like the same pattern is being exploited in TRON/Bitcoin.
In this article, we reveal why we believe that TRON/Bitcoin looks ready to make a splash.
TRON/Bitcoin Bearish Exhaustion at Parabolic Support
Tron/Bitcoin dropped to as low as 0.00000259 on August 16, 2018. At that price level, the market suffered losses of almost 90% from this year’s peak. Just as market participants feared the worst for TRX/BTC, the market showed signs of stability.
Daily chart of TRX/BTC
The extreme oversold conditions on the daily RSI helped the market stay above the parabolic support of 0.0000026. As bears faced extreme exhaustion, bargain hunters and bottom pickers started to buy the market. The dried up supply coupled with an increase in demand at the support enabled TRX/BTC to spark a rally and grow by over 50% in less than two weeks.
Reversal Pattern at the Bottom
Unfortunately, those who bought the bottom took advantage of the rally and with good reason. Without a clear trend reversal, the market remains in bear territory. As a result of the heavy selling, TRX/BTC pulled back to 0.00000273 on September 12.
4-hour chart of TRX/BTC
To a newbie, the dip is a sign that the market remains bearish. The reality, however, is that the market appears to be stabilizing just above the support. The development encouraged more market participants to enter the buying scene. This sparked a rally that saw the pair touch resistance of 0.0000039 on September 21.
With these price actions, we can see that TRX/BTC is creating an inverse head and shoulders structure on the 4-hour chart. This pattern is one of the most reliable reversal structures in technical analysis. Breach of 0.0000039 resistance would likely signal the end of the bear market.
Construction of Large Bullish Pattern Underway
Should the market breakout of the inverse head and shoulders pattern, we are likely to see TRX/BTC ignite a powerful bull run. We say powerful because the market only has two notable resistances to deal with. The first one is the 50% Fibonacci level of 0.0000064. The next is the 78.6% Fibonacci level of 0.00001. With these conditions, it is possible that TRX/BTC might climb to as high as 0.00001 in this bull run. It is then likely to correct and consolidate at the 50% Fibonacci level.
Projected move of TRX/BTC
If our projection comes to pass, TRX/BTC would potentially create a massive inverse head and shoulders pattern. This is the pattern that can supercharge momentum and help the market skyrocket to new highs.
TRX/BTC may be down big this year but things are starting to look up. The bearish exhaustion at the historic support and the formation of a bullish reversal structure on the daily chart make the market attractive to bottom fishers and bargain hunters. If our projections are correct, TRX/BTC may be headed to new all-time highs.