Trade Recommendation: Bitcoin Gold
Our February 8, 2019 trade recommendation for Bitcoin Gold (BTG/USD) hit both targets. If you stuck to the trading plan, you would have grown your investments by almost 90% in two months.
Now, the market appears to be in the early stages of an uptrend. We have this view because it spent four months in accumulation from December 2018 to April 2019. During this period the market range traded between $9 and $14. Currently Bitcoin Gold is out of range accumulation and bulls are in total control of the market. This means that BTG is a good candidate for buying on dips.
Technical analysis shows that BTG/USD has broken out of an inverse head and shoulders pattern on the daily chart. The breakout triggered a strong rally that sent the market to as high as $20.70 on April 5th. The breakout rally caught so much momentum that Bitcoin Gold failed to retest support of $14. Now that the market is correcting, it looks like BTG/USD will get that chance.
The strategy is to buy on dips as close to $14 as possible. The defense of this support confirms our bullish bias. It will allow bulls to cement $14 as a durable support, one that they can rely on to build a new base for the next leg of the uptrend. Also, the 50-day moving average (MA) and the 100-day MA are acting as supports around $14. These technical indicators will help Bitcoin Gold stay above $14.
As long as BTG/USD trades above this level, it will likely rally to our initial target of $20. Take that out and the next target is $26.
The process may take less than a month.
Daily Chart of Bitcoin Gold/US Dollar on Bitfinex
As of this writing, the Bitcoin Gold/US Dollar pair is trading at $16.417 on Bitfinex.
Summary of Strategy
Buy: As close to $14 as possible.
Targets: $20 and $26.
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.