Trade Recommendation: Burst
Burst (BURST/BTC) printed a fresh 2018 low of 0.000001 on December 18, 2018. At that price, the market was down by over 86% from this year’s high of 0.00000726. While Burst is down in a big way, its long-term market structure looks really interesting. That’s why we’re compelled to consider entering the market.
Technical analysis shows that BURST/BTC may have established a short-term bottom at 0.00000106. We have this view for several reasons.
First, 0.00000106 is a key price area. Burst struggled to go above that level from May 2015 until March 2017. When the market finally breached the resistance, it sparked a parabolic run that sent this crypto to as high as 0.00000979 in June 2017.
Also, this altcoin has respected its weekly diagonal support that existed since November 2015. With this support, the market has managed to post consecutive higher lows on the weekly chart. Now, it appears that the diagonal support has crossed paths with the horizontal support of 0.00000106. This should help the market reject lower prices.
Lastly, we can see a bullish divergence on the weekly RSI. The increasing bullish momentum at a key support area can inspire the market to rally.
The strategy is to buy as close to 0.00000106 as possible. As long as the price stays above this level, bulls will likely gather the momentum to rally to our initial target of 0.00000141. Take that out and the next target is 0.00000175
The process may take less than a month.
Weekly Chart of Burst/Bitcoin on Poloniex
As of this writing, the Burst/Bitcoin pair is trading at 0.00000111 on Poloniex.
Summary of Strategy
Buy: As close to 0.00000106 as possible.
Targets: 0.00000141 and 0.00000175.
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.