Trade Recommendation: Bottom Picking STRAT/BTC

The STRAT/BTC pair has been in a downtrend since June this year after it went as high as 0.000468. Yesterday, the market generated an extremely high volume on Bittrex at 6.79k compared to the average daily volume of less than 2k. This signals selling exhaustion. In addition, RSI continues to respect support at 47.5. Lastly, we have a hammer in today’s candlestick.

All in all, technical indicators suggest that the downtrend is over. This might be a good time to place buy orders. Since you are buying at the bottom, you have limited risk with a lot of upside.

It is important to note that the stock has not yet provided a clear bullish signal. Rallies are  expected with considerably fewer sellers in the market. Ride the rallies until the market reaches our target of 0.0008.

Summary of Strategy

Buy: between 0.0005 and 0.0006

Sell: 0.00080

Stop: A move below 0.0005 invalidates this trade call.

 

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.