Long-Term Trade Recommendation: ZRX

The 0x/Bitcoin (ZRX/BTC) pair looks bearish short-term, but it looks quite the opposite in the medium and long-term. The drop from 0.00018629 resistance appears to be a “buy on dip” rather than a full-blown correction. We have the technicals to support our view.

Technical analysis show that ZRX/BTC is trading within a wide ascending channel in the daily and weekly charts. The structure looks strong because it is not widening nor contracting. On top of that, the higher highs and higher lows are generated as a result of healthy consolidations and corrections. The symmetrical triangle pattern emerging in the daily chart is proof of this healthy consolidation.

Currently, the symmetrical triangle pattern appears to be completing the C-wave, which is often the penultimate leg down before the breakout. ZRX/BTC needs to complete two more waves before it can break out of the pattern and resume its climb to the top end of the range. Triangles take time to complete, which is why this is a long-term trade recommendation.

The strategy is to buy as close to 0.00012 as possible. If bulls preserve the long-term support, they will inspire a rally to our initial target of 0.00017. We expect one more leg down before ZRX/BTC can climb to our longer term target of 0.00025.

The process may take three months.

Long-Term Chart of 0x/Bitcoin on Binance

As of this writing, the 0x/Bitcoin pair is trading at 0.00013570 on Binance.

Summary of Strategy

Buy: As close to 0.00012 as possible.

Target: 0.00025

Stop:  0.0001

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.