Trade Recommendation: DigiByte/Bitcoin

The Digibyte/Bitcoin market skyrocketed after breaking resistance at 0.000006 on May 21 at Poloniex. It took the market 13 days to climb to an all-time high of 0.00002669 on June 3. That’s an astronomical 344.83% increase in value in less than half a month. Unfortunately for traders who bought at this level, sellers took advantage of Digibyte’s rapid ascent to dump their positions and take profits.

On July 9, the market went bearish as it broke below 0.000006. It settled at 0.000001 where it consolidated between November and December. A volume spike on December 17 signalled the end of the consolidation period, and the market has been rallying since. Recently, DigiByte attempted to breach resistance at 0.000006, but fortunately for you, it was repelled by bears. This gives you the opportunity to buy cheap.

Digibyte’s daily chart shows a bullish reversal pattern that relies on breach of resistance at 0.000006. As the market takes a dip, buy as close to 0.000004 as possible. The market needs 2,278 of Bitcoin volume on Poloniex to validate the breakout. Once breakout is confirmed, the target is 0.000011.

Daily Chart of DigiByte on Poloniex

As of this writing, the DigiByte/Bitcoin pair is trading at 0.00000468 on Poloniex.

 

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.