Trade Recommendation: CoinDash

Our trade recommendation for CoinDash/Bitcoin (CDT/BTC) on March 23, 2018 hit its target on April 29 when the market went as high as 0.0000086. In a little over a month, those who followed the recommendation grew their investments by close to 80%.

The next step after the market hit the resistance was to wait for either a higher low setup or a plunge back to the 0.00004 support. While CDT/BTC went as low as 0.00000537 on May 12, bulls quickly stepped in and lifted the pair back up to support of 0.000006 on May 13. The recovery of the support happened with heavy volume. This tells us that participants are buying the dips. That’s what we’ll do as well.

Technical analysis reveals that CoinDash/Bitcoin is creating a bullish higher low setup as it consolidates above 0.000006. The consolidation is happening with decreasing volume. This suggests that many of those who bought the bottom are holding on to their shares.

Also, the dwindling supply increases the possibility of a market surge and a break above 0.000008. This would trigger the cup and handle reversal pattern on the daily chart.

The strategy is to bottom fish the market and buy as close to 0.000006 as possible. As long as the market stays above the support, bulls have all the momentum they need to take out resistance of 0.000008 and move to our target of 0.000012.

The process may take a month.

Daily Chart of CoinDash/Bitcoin on Binance

As of this writing, the CoinDash/Bitcoin pair is trading at 0.00000604 on Binance.

Summary of Strategy

Buy: As close to 0.000006 as possible.

Target: 0.000012

Stop:  0.00000579

 

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.