Trade Recommendation: Agrello
The Agrello/Bitcoin (DLT/BTC) pair bounce off lows of 473 satoshis on September 12, 2018. At that price level, the pair was down by over 96% from the 2018 high of 13,098 satoshis.
This extreme plummet may discourage everyday investors. However, those who can spot the bottom should feel really encouraged. The market has lost so much that the upside potential is enormous once the pair reverses its trend. The good news is that we can see the trend reversal unfolding right now.
Technical analysis shows that DLT/BTC is positioning to take out resistance of 1,650 satoshis. The move above the resistance triggers the breakout from the inverse head and shoulders pattern on the daily chart.
Also, the breakout appears imminent. Even though DLT/BTC struggles to take out resistance of 1,650 satoshis, it always bounces off its uptrend support. On top of that, the market printed extremely heavy volume yesterday when it attempted to break out. While bears managed to defend the support, we don’t think they’ll survive the next onslaught.
The strategy is to buy the breakout at 1,650 satoshis after the market generates volume of 30 million Agrellos. Bears have proven that they want to keep market control. Thus, DLT/BTC needs buyers to finally take out the resistance.
Once breakout is complete, DLT/BTC will likely rally to our initial target of 2,800 satoshis. The process may take more than a month.
Daily Chart of Agrello/Bitcoin on Binance
As of this writing, the Agrello/Bitcoin pair is trading at 1,654 satoshis on Binance.
Summary of Strategy
Buy: Breakout at 1,650 satoshis after volume of 30 million Agrellos.
Target: 2,800 satoshis
Stop: 1,520 satoshis
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.
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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