Trade Recommendation: Decred
The Decred/Bitcoin pair (DCR/BTC) launched its bull run on May 11, 2018 when it took out resistance of 0.01. This triggered the large inverse head and shoulders reversal pattern on the daily chart. The breakout pushed the pair to as high as 0.015 on June 14. DCR/BTC has been correcting since. However, this can be your chance to buy the breakout.
Technical analysis show that the uptrend of DCR/BTC is very much alive. We have several reasons that support this view.
First, the market plummeted to as low as 0.009 on July 13. This should have triggered many stop losses but the low volume during this pullback shows that investors have strong hands. Their faith in the market was so strong that the technical breach did not bother them. The market established a bullish higher low at 0.009 and rallied.
Second, the rally was accompanied by bullish signals from technical indicators. The daily RSI sharply bounced after registering oversold readings. Plus, the daily MACD reveals a bullish cross. Lastly, the 4-day, 8-day, and 21-day moving averages are attaching to the daily candle’s body while trending up.
The strategy is to buy the dip as close to 0.0095 as possible. If the market manages to stay above this level, bulls are likely to inspire a rally to our initial target of 0.014. Take that out and the market can achieve the target of the inverse head and shoulders at 0.016.
The process may take more than a month.
Daily Chart of Decred/Bitcoin on Bittrex
As of this writing, the DCR/BTC pair is trading at 0.0098 on Bittrex.
Summary of Strategy
Buy: As close to 0.0095 as possible.
Target: 0.014 first and then 0.016.
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.