Trade Recommendation: Aeternity
Aeternity (AE/BTC) appeared to be doing well prior to the November 14, 2018 bloodbath. It bounced off lows of 0.0001266 on September 12, 2018, and climbed as high 0.0002275 on October 20. At that point, AE/BTC looked strong. In only needed to preserve support of 0.0001735 to resume its uptrend.
Unfortunately, Aeternity fell as one of the many victims of the November 14 crypto carnage. It breached the support and dropped to as low as 0.00015 on the same day. This move effectively negated the market’s bullish outlook. Nevertheless, there’s an opportunity here to generate some profits.
Technical analysis shows that AE/BTC appears to have created a lower high setup of 0.0001681 on November 16. This lower high seems to be the B-leg of an ABC corrective wave. If our analysis is correct, AE/BTC might be due for one more wave down before it stabilizes.
The C-wave will likely conclude at around 0.000145. We have this expectation as AE has a strong support at that area. Buyers will likely snatch positions at this price level as they did in the middle of August and at the end of September.
When bottom picking, however, the key is to watch for volume. If 0.000145 should hold, Aeternity must print above-average volume. Otherwise, this area might be in danger of collapsing.
The strategy is to buy the dip as close to 0.000145 support as possible. If bulls defend the support, we expect AE/BTC to range trade between 0.000145 and our target of 0.0001735.
The process may take a month.
4-Hour Chart of Aeternity/Bitcoin on Binance
As of this writing, the Aeternity/Bitcoin pair is trading at 0.0001555 on Binance.
Summary of Strategy
Buy: As close to 0.000145 as possible.
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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