Trade Recommendation: CyberMiles

The CyberMiles/Bitcoin (CMT/BTC) pair breached resistance of 0.000014 on August 24, 2018. This triggered the breakout from the falling wedge pattern on the daily chart. The breakout looks convincing as the pair printed volume that’s over 830% of its daily average. Consequently, CMT/BTC climbed to as high as 0.00001889.

Unfortunately for breakout buyers, the price action was interpreted by bottom fishers as an opportunity to take profits. As profit-taking commenced, CMT/BTC retraced. Less than a month later, it appears that the correction is over.

Technical analysis show that CMT/BTC is forming a durable support at 0.000012. While this level is slightly below the breakout, the market remains bullish because it is creating a higher low setup. This means that participants are no longer waiting for CMT/BTC to revisit recent lows of 0.00001099, which was posted on August 14 before entering long positions.

In addition, bulls rescued the market when it dropped to as low as 0.00001201 yesterday, September 17. What’s even more interesting is that there was a 230% volume surge yesterday. This indicates that the base building after the breakout is almost over.

The strategy is to buy as close to 0.000012 as possible. CMT/BTC is correcting to cool off technical indicators in the lower time frames. If the market can stay above this new support, it will likely climb to our target of 0.000021.

The process may take less than a month.

Daily Chart of CyberMiles/Bitcoin on Binance

As of this writing, the CyberMiles/Bitcoin pair is trading at 0.00001289 on Binance.

Summary of Strategy

Buy: As close to 0.000012 as possible.

Target: 0.000021

Stop: 0.0000115

 

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.