Trade Recommendation: Bancor
The market structure of Bancor (BNT/BTC) is something that we’ve seen before. It looks like a market trying to carve a bottom.
It all started on December 18, 2018 when the market started to establish support of 0.00014. At that point, Bancor was showing signs of reversal. First, it was trading at oversold levels. On top of that, we saw a large bullish divergence on the daily chart. Also, sell volume was weak. All these signals pointed to bearish exhaustion.
As bears lost steam, bottom pickers and bargain hunters started to enter the scene. The buying activity ignited a rally that sent Bancor to the range high of 0.00023 on January 6, 2019. The market has been correcting since, but this gives us a chance to buy the bottom.
Technical analysis shows that BNT/BTC is en route to support of 0.000141. This view comes after the market breached our range midpoint of 0.0001855. Also, BNT/BTC is creating a bear pennant on the 12-hour chart. This is a continuation pattern that should send Bancor close to our range low of 0.000141.
Should the market once again defend 0.000141, Bancor would print a double bottom pattern. This is a pattern used by many altcoins that have started to trend higher, such as Zilliqa (ZIL/BTC), Dock (DOCK/BTC), and Augur (REP/BTC). We believe BNT/BTC would follow the footsteps of these coins as we begin to see the money rotate from large caps to mid caps and then small caps.
The strategy is to buy as close to 0.000141 as possible. As long as Bancor stays above this level, it will likely gather the momentum to rally to our targets of 0.0001855 and 0.00023.
The process may take a month.
12-Hour Chart of Bancor/Bitcoin on Binance
As of this writing, the Bancor/Bitcoin pair is trading at 0.0001552 on Binance.
Summary of Strategy
Buy: As close to 0.000141 as possible.
Targets: 0.0001855 and 0.00023.
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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