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
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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