Trade Recommendation: Bitmark

The Bitmark/Bitcoin pair (BTM/BTC) flashed bullish signs on December 13, 2017 when it breached 0.00012 resistance. The strong breakout gathered sufficient momentum to carry the market to as high as 0.00024 on January 10, 2018. In less than a month, the pair grew by 100%. Breakout players dumped positions as they took the chance to lock their gains.

As bears dominated the market, BTM/BTC fell to 0.00014811 on January 17. Even though the pair rallied, it could only go as high as 0.00018485 on January 29. Since then, it’s been creating a series of lower highs and lower lows, and it appears that the market is headed to its last firm support.

Technical analysis show that Bitmark/Bitcoin have taken out 0.00012 on February 6. More importantly, it seems to have created another lower high of 0.00010686 on March 21. The bearish price action could increase the selling pressure in the market, and force it down to 0.00005 support. Bulls have held this support level since August 2014. It is the market’s strongest support level.

The strategy is to buy as close to 0.00005 as possible. If bulls continue to defend the support, the market will likely create a base at this price before it can rise to our target of 0.00012. The process may take more than a month.

Daily Chart of Bitmark/Bitcoin on Poloniex

As of this writing, the Bitmark/Bitcoin pair is trading at 0.00008832 on Poloniex.

Summary of Strategy

Buy: As close to 0.00005 as possible.

Target: 0.00012

Stop:  0.000048

 

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.