Trade Recommendation: BlockMason Credit Protocol

BlockMason Credit Protocol (BCPT/BTC) printed a fresh 2018 low of 0.00000791 on December 28. At that price level, the market was down by more than 94% from last year’s high of 0.00015186. With this price action, we can say that 2018 was a rough year for BlockMason Credit Protocol. Nevertheless, its ability to stay above a key support area offers an opportunity to bottom pick the market.

Technical analysis shows that BCPT/BTC respects support of 0.000008. This level is the market’s parabolic support. On December 13, 2017, bears tried to drive the price below this support. The attempt was swiftly rejected. This swing failure pattern ignited a parabolic run that saw BCPT/BTC climb as high as 0.00015186.

Now that the market is back trading around 0.000008, we can see bulls coming back in droves. The significant volume surge on January 1, 2019 tells us that bottom pickers and bargain hunters are buying in bulk. On top of that, we can see a long bullish divergence on the three-day chart. This tells us that the market is turning bullish.

Overall, we can see signals indicating that the smart money is accumulating at these levels.

The strategy is to buy as close to 0.000008 support as possible. As long as BCPT/BTC stays above this level, it will likely gather the momentum to rally to our target of 0.000014.

The process may take a month.

Daily Chart of BlockMason Credit Protocol/Bitcoin on Binance

As of this writing, the BlockMason Credit Protocol/Bitcoin pair is trading at 0.00000856 on Binance.

Summary of Strategy

Buy: As close to 0.000008 as possible.

Target: 0.000014

Stop: 0.0000077

 

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.