Trade Recommendation: district0x

 

The district0x/Bitcoin pair ignited its bull run on December 31, 2017 when it breached resistance of 0.00001. The solid base it created between 0.0000025 – 0.00001 enabled the market to soar to as high as 0.0000298 on January 6, 2018. In one week, the pair grew by almost 200%! The meteoric rise in value lured breakout buyers to take profits.   

As the market succumbed to selling pressure, it dropped to 0.00001115 on January 16. Bottom pickers bought the dip; however, the ensuing rally generated a lower high of 0.00002178 on January 19. The bearish price action snuffed out the market’s bullish steam. Many participants responded by either locking gains or cutting their losses. As a result, DNT/BTC posted a series of lower highs and lower lows until it bottomed out on March 18 at 0.00000438.

Technical analysis reveal that district0x/Bitcoin appears to be creating a bullish reversal pattern on the daily chart with a breakout point at 0.00001. This comes after bulls posted a higher low of 0.00000701 on April 4. To complete the breakout, the pair must print around 150 million units of distric0x in volume. Those who bought the higher low are likely to dump some of their positions at the resistance level. DNT/BTC needs buyers to absorb the increased selling pressure.

The strategy is to buy the breakout at 0.00001 after the prescribed volume is met. If bulls complete the breakout, the market will catapult to our target of 0.000015. Sell immediately because a bearish rising wedge is forming. The breakdown point is 0.000015.

The process may take less than a month.

Daily Chart of DNT/BTC on Binance

As of this writing, the district0x/Bitcoin pair is trading at 0.00000908 on Binance.

Summary of Strategy

Buy: Breakout at 0.00001 with 150 million district0x volume.

Target: 0.000015

Stop: 0.00009 after the breakout.

 

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.