Trade Recommendation: Bitcoin Gold
Bitcoin Gold (BTG/BTC) had a chance to launch a bull run on November 19, 2018 when it breached the range high of 0.004886. All it had to do was to flip that resistance into a support. Unfortunately, the market was not yet ready, as the price moved below the resistance the very next day. Bitcoin Gold then retested 0.004886 as resistance on November 26. This sparked a selling frenzy that pulled Bitcoin Gold back to the range low.
While the market may look extremely bearish, it is actually giving us an opportunity to buy cheap.
Technical analysis shows that BTG/BTC is still in accumulation mode. This view comes as the market continues to range trade between 0.00254 and 0.004886. As long as our range low of 0.00254 holds, Bitcoin Gold has a very good chance to establish a durable bottom.
We believe that support of 0.00254 will likely hold due to extreme oversold conditions on the daily chart. On top of that, we can see a large wick below the body of the daily candle. This tells us that bottom-pickers and bargain hunters have entered the scene.
Now, what we want to see is for Bitcoin Gold to continue trading around 0.00254 in the next few days but with low volume. This will confirm our view that bearish exhaustion is in.
The strategy is to buy as close to 0.00254 as possible. As long as Bitcoin Gold trades above this level, it will likely rally to the range midpoint of 0.003709. Take that out and the next target is 0.004886.
The process may take more than a month.
Daily Chart of Bitcoin Gold/Bitcoin on Binance
As of this writing, the Bitcoin Gold/Bitcoin pair is trading at 0.002836 on Binance.
Summary of Strategy
Buy: As close to 0.00254 as possible.
Targets: 0.0037 and 0.0048.
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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