Trade Recommendation: Bread
We’ve been watching Bread (BRD/BTC) ever since it bottomed out around the support of 0.00004525. At that point, we knew that the market has transitioned from markdown to accumulation. The smart money accumulated positions as the market range traded between 0.00004525 and 0.00006314.
While there were several instances when Bread breached the range high of 0.00006314, every single move was taken as an opportunity to lock in gains. As a result, the market always returned to our range. Nevertheless, we believe that it is only a matter of time before Bread finally breaks out of the range.
Technical analysis shows that BRD/BTC is almost ready to start a bull run. This view comes after the market gave us several bullish signals.
First, Bread established a bottom using a triple bottom structure. This is a very convincing pattern to show market participants that the price won’t like to fall any further than the range low of 0.00004525.
With this pattern, bulls started to gain some momentum. They first established a bullish higher low setup on November 20, 2018 when the market dropped to as low as 0.00004886. This was a clear signal that bargain hunters and bottom pickers were ready to buy positions at a higher price.
This enabled the market to finally claim the range midpoint of 0.00005413 on January 18, 2018. At that point, Bread has been in accumulation for over 170 days. The length of accumulation time plus the move to the range midpoint convince us that the market’s next step is to take out the range high and trend higher.
The strategy is to buy as close to 0.00005413 support as possible. As long as BRD/BTC stays above this level, it will likely gather the momentum to rally to our target of 0.00006314. Take that out and the next target is 0.0000762.
The process may take less than a month.
Daily Chart of Bread/Bitcoin on Binance
As of this writing, the Bread/Bitcoin pair is trading at 0.00005552 on Binance.
Summary of Strategy
Buy: As close to 0.00005413 as possible.
Targets: 0.00006314 and 0.0000762.
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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