Trade Recommendation: BlackCoin/Bitcoin

The BlackCoin/Bitcoin (BLK/BTC) pair lost its bullish steam on July 5, 2017 when it generated a lower high of 0.000188. Things went from bad to worse for when the pair broke below support of 0.00014 on July 7. From then on, the market created a series of lower highs and lower lows until it bottomed out on September 15 at 0.0000293.

As sellers ran out of ammunition, the market exploded to as high as 0.00006995 on September 19. The close to 140% growth in four days was exploited by bottom pickers. They took profits which sent the market to as low as 0.00001758 on December 8. While the market broke below support of 0.00002750, it didn’t take long for bulls to reclaim the support level and push the price up to as high as 0.00008 on December 30. At this point, the pair’s trading range had been established.  

Technical analysis show that BlackCoin/Bitcoin is currently consolidating as market participants accumulate positions. The same market participants who are buying support of 0.0000275 are most likely the ones selling at 0.00007 resistance. It would be profitable for you to follow their lead.

The strategy is to buy as close to 0.0000275 support as possible. If the market respects this level, it will likely march to our target of 0.00007. The process may take a month.

Daily Chart of BlackCoin/Bitcoin on Poloniex

As of this writing, the BlackCoin/Bitcoin pair is trading at 0.00003149 on Poloniex.

Summary of Strategy

Buy: As close to 0.0000275 as possible

Target: 0.00007

Stop:  0.000024

 

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.