Trade Recommendation: BitcoinDark

The BitcoinDark/Bitcoin (BTCD/BTC) flashed signs of bullishness on December 20, 2017 when it breached 0.015 resistance. It gathered enough momentum to push the price up to 0.0285 on December 22. At that point, however, the market was in extreme overbought territory. Breakout players were happy to comply by taking profits.  

Faced with heavy selling the pressure, the market dropped to 0.01650227 on December 27. Sensing a higher low was in place, bottom pickers bought positions and pushed the market to as high as 0.02808269. Unfortunately for buyers at this level, 0.02808269 was a lower high. This snuffed out any bullish steam, which sent the market to a freefall.

Technical analysis reveal that BitcoinDark/Bitcoin broke below 0.015 support on January 25, 2018. Below this level, the next firm support is 0.008 which has never been breached since May 2017. It appears that the market is bound to hit this support sooner rather than later.

The strategy is to buy as close to 0.008 support as possible. If the market continues to respect this level, the pair might use it as a springboard to launch the price up to our target of 0.015. The process might take a month.

Daily Chart of BitcoinDark/Bitcoin on Poloniex


As of this writing, the BitcoinDark/Bitcoin pair is trading at 0.00919006 on Poloniex.

Summary of Strategy

Buy: As close to 0.008 as possible.

Target: 0.015

Stop:  0.0075

 

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.