Trade Recommendation: Bitcoin Gold
Our April 27, 2019 trade recommendation for Bitcoin Gold (BTG/USD) hit its first target. Those who followed the trading plan grew their investments by over 26% in about a week when the market went as high as $20.25 on May 3rd.
Now, the second target of the trade recommendation is still in play. However, Bitcoin Gold is currently retracing. Those who sold some of their positions can take advantage of the dip to buy low. To those who have yet to go long the market, now appears to be a very good chance to do so.
Technical analysis shows that BTG/USD has respected immediate resistance of $25.50. With the market succumbing to selling pressure at that price area, the nearest support is $18. We believe Bitcoin Gold is headed to that support because it is close to overbought territory. The technical indicator needs to reset before BTG/USD can stage another leg up.
Fortunately, the 50-day moving average (MA) is gliding close to $18 and acting as additional support. Also, we can see a pending cross between the 100-day MA and the 200-day MA. Should the golden cross take place, it might act as a technical catalyst that inspires Bitcoin Gold to rally.
The strategy is to buy as close to $18 as possible. As long as BTG/USD trades above this level, it will likely rally to our initial target of $25.50. Take that out and the next target is $33.
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 $21.139 on Bitfinex.
Summary of Strategy
Buy: As close to $18 as possible.
Targets: $25.50 and $33.
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.