Trade Recommendation: BitShares
The BitShares/Bitcoin pair (BTS/BTC) started to show signs of bearishness on January 6, 2018 when it generated a lower high of 0.00005505. This was a clear signal that the pair’s impressive parabolic run between December 14, 2017 – January 2, 2018 was over. Savvy traders who saw the signal dumped their positions.
As a result, BTS/BTC broke support of 0.00004 on January 15. This triggered the rounding top reversal pattern on the daily chart. The breakdown sparked a selling frenzy that drove the market to as low as 0.00001617 on March 18. In about three months, BTS/BTC lost 70% of its value.
At this price level, the market flashed signs of reversal. First, the pair respected RSI support of 30. On top of that, the 4-day, 9-day, and 21-day moving averages started to reverse their trend. These signs told participants that the market has bottomed out.
With a bottom in place, bottom fishers began to enter the buying scene. This ignited a strong rally to 0.00004438 on April 30. While the market has been pulling back since, this could be your chance to buy the possible higher low.
Technical analysis show that Bitshares/Bitcoin pair is creating a symmetrical triangle pattern on the daily chart. It dropped to 0.00002479 on May 24 and that’s where bulls came to the rescue. Their presence inspired a bounce to 0.00003817 on June 3. While the pair is currently correcting, this can be an opportunity to buy the confirmation of the support.
The strategy is to buy the confirmation of support as close to 0.000027 as possible. If bulls can stay above this level, they may gather the momentum needed to climb to our target of 0.00004.
The process may take a month.
Daily Chart of BitShares/Bitcoin on Binance
As of this writing, the BitShares/Bitcoin pair is trading at 0.00002781 on Binance.
Summary of Strategy
Buy: As close to 0.000027 as possible.
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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