Trade Recommendation: BitTorrent (BTT)
BitTorrent (BTT/USD) is a market that is likely to have bottomed out. The crypto token had been correcting ever since it posted a 2019 high of $0.0018799 on May 28th. At that point, bulls were showing signs of exhaustion which bears exploited hard. As a result, sellers drove the market to as low as $0.0007927 on July 17th. That’s a massive drop of close to 60% in less than two months.
Now, it’s the turn of the bears to lose steam. This gives us the opportunity to consider a long position at a solid entry point.
Technical analysis shows that BTT/USD is respecting support of $0.000865. We have this view because even though bears breached the support on July 16th, bulls fought back hard and reclaimed the support on July 17th. This tells us that the move below $0.000865 is a deviation.
In addition to that, the demand for BTT at $0.000865 was so strong that the market was able to break out of a descending channel. Lastly, bulls are threatening to finally take out the diagonal resistance of the daily RSI. This resistance has kept the market bearish over the last two months. A move above the RSI level of 40 will swing momentum back to the side of the bulls.
The strategy is to buy as close to $0.000865 as possible. As long as BTT/USD trades above this level, it will likely rally to our initial target of $0.0012. Take that out and $0.00136 is next.
The process may take less than a month.
Daily Chart of BitTorrent/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $0.000865 as possible.
Targets: $0.0012 and 0.00136.
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.