Trade Recommendation: BitcoinDark/Monero

The BitcoinDark/Monero pair exhausted its bullishness on July 9, 2017 when it generated a lower high of 2.19999910. The market officially went into a downtrend on August 19 when it broke below support of 1.00. It went as low as 0.322 on August 26 before establishing support at 0.40.

The market came back to life on September 3 when it opened at 0.57504118 and closed at 0.93584109. The sudden surge in price attracted momentum players, and the market was able to push the price up to 1.50000002 on September 30 before succumbing to selling pressure. Bears sent the market down to support of 0.85 on October 14 where it consolidated for about a week before making another run towards 1.40 resistance. While the market managed to pierce resistance at 1.40 on November 6, bears flexed their muscles once again and sent the market spiraling down to 0.40.

Technical analysis show that the market is currently in a sideways trend locked in a wide range between 1.40 resistance and 0.40. The BitcoinDark/Monero pair has never closed below 0.40 support since May 24, 2017 while it has never really taken out 1.40 resistance since August 13, 2017. The support and resistance levels appears to be very firm. We can take advantage of this sideways trend by buying at support and selling at the resistance level.

The strategy is to buy as close to 0.40 support as possible, and sell as close to 1.40 resistance as possible. With the market very close to 0.40 support, the climb up to 1.40 might take a month.

Weekly Chart of BitcoinDark/Monero on Poloniex

As of this writing, the BitcoinDark/Monero pair is trading at 0.43087285 on Poloniex.

 

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.