Trade Recommendation: ChainLink/Bitcoin

The ChainLink/Bitcoin (LINK/BTC) pair lost all bullishness on October 12, 2017 when it generated a lower high of 0.00009850. On the next day, the market broke support at 0.00008, which triggered the downtrend. From then on, the market created consecutive lower lows and lower highs. It took the pair exactly two months to find the bottom at 0.00001 on December 12.  

Since the market lost 89.85% of its value, it rallied quickly after bottoming out. It went as high as 0.00009499 on January 9, 2018 before succumbing to profit taking. The market went as low as 0.00004 on January 17, before bulls rushed to absorb the selling pressure, and sent the market up to 0.00006288. With a lower high in place, LINK/BTC rallied to as high as 0.0000985 on January 21. While the market dipped again, it is your chance to enter at a favorable price point.

Technical analysis show that the LINK/BTC pair is creating a bullish higher low setup at 0.00005. In addition, volume for the last two weeks has been on a steady decline. This indicates that sellers are about to lose ammunition.   

The strategy is to buy as close to 0.00005 support as possible. For this play, we will trade the range to generate profits. The top end of the range and our target is resistance at 0.00008. The march up to the resistance level may take one month.   

Daily Chart of ChainLink/Bitcoin on Binance

As of this writing, the ChainLink/Bitcoin pair is trading at 0.00005194 on Binance.

 

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.