Trade Recommendation: Bitshares
The Bitshares/Bitcoin pair (BTS/BTC) nosedived to as low as 0.00001399 on September 12, 2018. At that price level, the market was down by over 78% from the 2018 high of 0.00006648.
While this drop is significant, it is not as bad as the 80% – 90% losses incurred by other popular altcoins. This can actually be taken as a sign of strength, especially if 0.00001399 is the bottom. We have two reasons to believe that this is the case.
Technical analysis show that BTS/BTC is positioning to take out resistance of 0.000018. Breach of this level would trigger the breakout from the large symmetrical triangle on the daily chart. Though it’s possible that the market might resume its downtrend, the RSI tells a different story.
In October 2017, the RSI found a bottom at 20 and that signalled the end of a four-month bear run. Between that point and January 2018, the market grew by almost 700%. Nine months later, the market again respected RSI support of 20. This might indicate the start of another bull run.
The strategy is to buy the breakout at 0.000018 as long as the market generates volume of at least 4 million Bitshares units. Those who bought the bottom will likely take profits at the resistance. BTS/BTC needs buyers to absorb the selling pressure.
Once the market takes out 0.000018, we have a target of 0.000036. The process may take a month.
Daily Chart of Bitshares/Bitcoin on Poloniex
As of this writing, the Bitshares/Bitcoin pair is trading at 0.00001607 on Poloniex.
Summary of Strategy
Buy: Breakout at 0.000018 with volume of at least 4 million Bitshares units.
Stop: 0.000016 after the breakout.
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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