Trade Recommendation: Bitmark
The bull run of Bitmark started on March 27, 2017 when the Bitmark/Bitcoin pair breached resistance of 0.00025. Two months later, the pair climbed to as high as 0.000852, but it closed at a low of 0.00056385 on the same day. This created a long wick on top of the daily candle’s body. The price action is bearish, as it indicates heavy selling pressure above 0.00056385. Bears took over on June 24 after the market closed at 0.00058761, creating a double top structure and starting the downtrend.
Bitmark took five months to find stability. The altcoin established support at 0.000045 on November 20. It has been rallying since. In fact, it is almost ready to reclaim the 0.00025 resistance level.
Technical analysis show that 0.00025 is a key market level. Below this level, the market is bearish; above this level, the market is bullish. To successfully take out this level, the pair needs 154.78 of Bitcoin volume. Those who bought at 0.00012 on December 14 when the volume spiked will likely sell their positions at the 0.00025 resistance level. The market needs buyers to absorb the selling pressure to increase the likelihood of a breakout.
The strategy is to buy at 0.00025 resistance as soon as volume is confirmed. Don’t be afraid to get left behind because the target is the next resistance level of 0.0005. You have time to wait for confirmation before placing buy orders.
Daily Chart of Bitmark/Bitcoin on Poloniex
As of this writing, the Bimark/Bitcoin pair is trading at 0.00021702 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.