Trade Recommendation: Centra

The Centra/Bitcoin pair (CTR/BTC) launched its bull run on December 19, 2017 when it breached resistance of 0.00005. The breakout was so strong that it skyrocketed to 0.00029627 on January 4, 2018. In three weeks, the market rose by an astronomical 500%! Breakout players and trend followers were ecstatic to take profits.

As sellers dumped positions, CTR/BTC dropped to 0.00015 on January 10. While bottom pickers bought the dip, the pair could only go as high as 0.0002691 on January 11. Participants saw the lower high as a sign that bulls were exhausted. Consequently, bears exploited the opportunity, and took control of the market. They sent the pair into a downward spiral as CTR/BTC broke below one support after another until recent events.

Technical analysis reveal that Centra/Bitcoin has reclaimed 0.00005 support yesterday, March 21. The push happened with extremely high volume. On average, CTR/BTC would print volume of around 5 million CTR units but on March 21, volume surged to 21 million. This indicates that bulls are armed and ready to defend the 0.00005 support level.

The strategy is to buy at the current price level. If CTR/BTC manages to stay above 0.00005 support, it will likely gather momentum to touch 0.0001 resistance. The process may take a month.

Daily Chart of Centra/Bitcoin on Binance

As of this writing, the Centra/Bitcoin pair is trading at 0.00004932 on Binance.

Summary of Strategy

Buy: current price of 0.0000497.

Target: 0.0001

Stop:  0.000048

 

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.