Trade Recommendation: aelf

The Aelf/Bitcoin pair (ELF/BTC) has been trapped in a wide range between 0.000056 to 0.00022 since December 22, 2017. For about a month and a half, market participants accumulated positions as seen on the daily average Aelf volume of 30 – 40 million units. By February 6, 2018, volume began to exponentially decline. This suggests that early adopters are done accumulating positions.

All of a sudden, the market came back to life on April 12 when volume spiked to over 75 million Aelf units. The surge was a signal that the pair was in the latter stages of base building. True enough, ELF/BTC rallied to as high as 0.000238 before bottom pickers began to take profits.

The market has been correcting since. However, it appears the ELF/BTC is also preparing to mount another rally.

Technical analysis show that Aelf/Bitcoin is positioning make another run at 0.00022. This comes after the market respected the 50% Fibonacci level on May 18. In addition, a hidden bullish divergence can be spotted on the RSI. These indicators tell us that the pair is generating a bullish higher low setup.

The strategy is to buy as close to 0.00016 as possible. If bulls can stay above this level, they will attract more bottom pickers who can help lift the market to our target of 0.00022.

The process can take less than a month.

Daily Chart of ELF/BTC on Binance

As of this writing, the Aelf/Bitcoin pair is trading at 0.00016026 on Binance.

Summary of Strategy

Buy: Current price of 0.00016026.

Target: 0.00022

Stop: 0.000155

 

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.