Crypto Update: Tron/Bitcoin (TRX/BTC) Looking Bullish Short-term and Long-term
Tron/Bitcoin (TRX/BTC) has been one of the most exciting pairs this year. It skyrocketed by over 540% between January 1 – January 5, 2018. However, that rate of ascent is never sustainable. As expected, the pair shed off significant gains a couple of months later.
Nevertheless, TRX/BTC appears bullish in both the short-term and long-term. In this article, we reveal the reasons why.
Tron Bullish Short-term: Imminent Falling Wedge Breakout
TRX/BTC looked bearish when it broke support of 0.000008 on June 1. This triggered the double top reversal pattern on the daily chart. As the pair created lower highs and lower lows, a falling wedge structure emerged. Currently, the market is in the narrowest point of the wedge and that makes a breakout inevitable.
We believe the breakout has a bullish bias for a couple of reasons. First, the market is in oversold territory. The expected selling relief should help drive demand and push the price up. Second, the MACD line is about to move above the signal line. This tells us that the pair is gaining strength.
Daily chart of TRX/BTC
A breakout from the falling wedge would most likely ignite a powerful rally in the short-term. Investors may potentially gain around 60% in less than a month.
Tron Bullish Long-term: Accumulation Within a Symmetrical Triangle
A symmetrical triangle pattern often denotes trend continuation, but it can also ignite a trend reversal. What’s important is that a symmetrical triangle forms due to accumulation. The powers that be or the smart money usually uses this period to buy a lot of positions to influence demand in the future. During this period, the smart money buys a little everyday so as not to attract attention.
The accumulation period is noticeable in TRX/BTC. Volume has been steadily decreasing since May, which is after the distribution phase. On top of that, the pair appears to create a higher low at 0.000005 support. This bullish setup is bound to attract a lot of momentum and that should help cover up sudden volume surges.
Long-term view of TRX/BTC
The formation of a large symmetrical pattern on the daily chart gives smart money investors a lot of time to accumulate. When they’re done buying positions, they will most likely trigger the breakout. This gives us a very good reason to believe that TRX/BTC is bullish long-term.
Tron/Bitcoin gave cryptocurrency investors something to be excited this year as it grew by more than 500% in less than a week. While the market has been correcting since, there are indications that it is becoming bullish in the short-term, as well as the long-term. The imminent breakout from the falling wedge pattern and the accumulation within an ascending triangle pattern give us reasons to be excited about the future of TRX/BTC.
Featured image courtesy of Shutterstock.