Trade Recommendation: Egretia (EGT)
Egretia (EGT/BTC) is one of the few altcoins that’s showing strength against Bitcoin. The cryptocurrency is relatively new which is why it doesn’t have a lot of trading history. However, a quick look at the 4-hour chart tells us two things. First, the crypto token made a strong move against bitcoin on July 10, 2019. Second, it has been consolidating since. These two observations tell us that Egretia is due for a breakout soon.
Technical analysis shows that EGT/BTC is painting two bullish patterns on the 4-hour chart. The first one is a large bull flag. As mentioned, the cryptocurrency is in sideways consolidation. While doing so, it has been trading between the resistance of 0.000008 and support of 0.0000062. The range trading has enabled the market to print the bull flag.
Take note: the bull flag is a continuation pattern that suggests that Egretia is likely to flex its muscles against bitcoin once this round of profit-taking is over.
Another pattern that we can see is an inverse head-and-shoulders structure. The market appears to have created the right shoulder of the pattern when it refused to go below 0.000007 on July 21st. This is another continuation pattern that validates our bias.
On top of these structures, we can see the daily RSI respect the uptrend line. This tells us that bulls are still in control as bullish momentum continues to grow.
The strategy is to buy on the breakout and retest of 0.000008 as support. If EGT/BTC manages to stay above this level, bulls are likely to inspire a rally to our target of 0.000011.
The process may take less than a month.
4-Hour Chart of Egretia/Bitcoin on Binance
Summary of Strategy
Buy: On the breakout and retest of 0.000008 as support.
Stop: 0.0000076 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.
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