Trade Recommendation: CyberMiles
CyberMiles (CMT/BTC) started to look bullish on October 4, 2018, when it breached resistance of 0.00001655. This triggered the breakout from the double bottom pattern on the 4-hour chart. The breakout ignited a rally to 0.0000222 on October 9.
Although CyberMiles appeared to have established a short-term top at this point, it only needed to hold on to 0.00001655 support to maintain its bullish outlook. Unfortunately, the selling pressure was so great that the market created three lower highs and breached the support. This led to a waterfall event that drove the market below support of 0.00001168.
Although CyberMiles might look extremely bearish right now, the market presents an opportunity to buy the bottom.
Technical analysis shows that CMT/BTC is well on its way down to the historical support of 0.00000850. This view comes after the pair flipped support of 0.00001168 into resistance on November 20. With the R/S flip, the only remaining support for the market is 0.00000850. This is a very good level to buy due to overwhelmingly favorable risk to reward ratio.
First, based on the Binance chart, CyberMiles has always managed to bounce when price touched this level. This tells us that participants bargain hunt around 0.00000850. Also, the downside for this trade is nothing compared to the upside. If the support fails, the stop loss target is less than 3%. On the other hand, the profit potential is close to 40%.
The strategy is to buy the dip as close to 0.00000850 support as possible. If bulls defend the support, we expect CMT/BTC to range trade between 0.00000850 and our target of 0.00001168.
The process may take a month.
4-Hour Chart of CyberMiles/Bitcoin on Binance
As of this writing, the CyberMiles/Bitcoin pair is trading at 0.00001054 on Binance.
Summary of Strategy
Buy: As close to 0.00000850 as possible.
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.