Trade Recommendation: Bitcoin Gold
The Bitcoin Gold/Bitcoin (BTG/BTC) market lost its bullish momentum on November 21, 2017 when it generated a lower high of 0.065. As market participants noticed that the pair has ran out of steam, a selling frenzy was triggered. On December 5, the pair broke below support of 0.025.
The BTG/BTC pair nosedived as selling pressure increased. However, the market needed only three days after going below 0.025 to bottom out at 0.011551 on December 8. Having lost over 82% of its value in about two weeks, the market quickly rallied. Bottom pickers pushed the price to as high as 0.029 on December 20. The rapid increase inspired a round of profit taking, which forced the market down to support of 0.0115.
Technical analysis show that the Bitcoin Gold/Bitcoin pair is consolidating while trading between the range of 0.0115 – 0.025. During this period, participants accumulated positions at an optimal price point, which is usually at the bottom of the downtrend. The ones who buy the bottom are likely the same people selling the top. As the range has been determined, you can join these participants to generate profitable trades.
The strategy is to buy as close to 0.0115 as possible and sell as close to 0.025 resistance. This process may take less than a month. You can deploy the same play again and again until the market takes out 0.025 resistance.
Daily Chart of Bitcoin Gold/Bitcoin on Binance
As of this writing, the Bitcoin Gold/Bitcoin pair is trading at 0.01183 on Binance.
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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