Trade Recommendation: Ark
Ark (ARK/BTC) became a victim of the November 19 crypto carnage when it breached support of 0.00009. The breakdown sparked a waterfall event as those who bought the range rushed to close their positions. As a result, the pair plummeted and generated a yearly low of 0.0000752 on November 20.
At that point, Ark appeared to have more downside potential. Wiping out support of 0.00009 meant that the market had no more support. In other words, there’s no way of knowing where the price would stabilize. Fortunately, this crypto found a way to resist gravity.
Technical analysis shows that the recent breakdown of ARK/BTC appears to be nothing more than a bear trap. The market swiftly bounced and recovered 0.00009 a day after the November 19 crypto carnage. The bear trap created a lot of bullish momentum in a fairly short time frame and that catapulted the pair to as high as 0.0001167.
Currently, Ark is pulling back from the rally as participants either take profits or use this chance to exit the market out of fear of future dumps. Also, the 4-hour RSI respected resistance of 69. It seems that bulls are exhausted for now. Nevertheless, this presents us an opportunity to buy the support.
The strategy is to buy the dip as close to 0.00009 as possible. If bulls hold on to the support, we expect ARK/BTC to rally to our initial target of 0.00012. Take that out and we can climb to the top end of the range of 0.0001425.
The process may take a month.
4-Hour Chart of Ark/Bitcoin on Binance
As of this writing, the Ark/Bitcoin pair is trading at 0.0001044 on Binance.
Summary of Strategy
Buy: As close to 0.00009 as possible.
Target: 0.00012 first and 0.0001425.
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.