Trade Recommendation: DigiByte
The DigiByte/Bitcoin (DGB/BTC) pair managed to go as high as 0.00002669 on June 3, 2017. Unfortunately for buyers at that level, bulls showed signs of exhaustion. After all, the pair skyrocketed by 7,750% in two months since it opened at 0.00000034 on April 3.
Almost everything that goes up must eventually come down. This remained true for DGB/BTC after plummeting to 0.0000007 on December 8, 2017. The pair has been consolidating since, but it appears that DGB/BTC is almost ready to ignite a bull run.
Technical analysis show that DGB/BTC is creating a large symmetrical triangle on the daily and weekly charts. The triangle is currently completing its E-wave, which is often the final wave down. After this corrective move, the bounce puts tremendous pressure on bears to create a lower high. The increased demand usually negates the selling pressure, which results in a breakout.
The strategy is to buy as close to 0.000004 support as possible. If the support continues to hold, then DGB/BTC would create another bullish higher low setup. That should generate the required momentum to break out of the pattern and take the pair to our target of 0.0000078.
The process can take less than one month.
Daily Chart of DigiByte/Bitcoin on Poloniex
As of this writing, the DigiByte/Bitcoin pair is trading at 0.00000416 on Poloniex.
Summary of Strategy
Buy: As close to 0.000004 as possible.
As close to 0.000004 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.
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