Trade Recommendation: Eidoo/Bitcoin

Our March 29, 2018 trade recommendation for Eidoo/Bitcoin (EDO/BTC) pair achieved its target on April 30 when it went as high as 0.0003143. Those who followed the recommendation grew their investments by over 65% in one month.

As 0.00031 is a firm resistance level, we expected bears to defend it. The next step is to wait for a bullish higher low setup before reentering the market. It appears that the market has achieved a higher low on May 11. EDO/BTC went as low as 0.000203, which is near the 23.6% Fibonacci level. This could be your opportunity to ride the wave up.

Technical analysis show that, in addition to the higher low setup, Eidoo/Bitcoin appears to have also broken out of a cup and handle reversal pattern on the hourly chart. The breakout affirms our view that a higher low is already in place. This means that the B-wave of an ABC corrective pattern is already complete. The next wave up should take us to resistance of 0.00031.

The strategy is to buy as close to 0.000215. As long bulls are above this support, they have all the momentum to climb to our target of 0.00031. The process can take less than a month.

Daily Chart of Eidoo/Bitcoin on Binance

As of this writing, the Eidoo/Bitcoin pair is trading at 0.0002287 on Binance.

Summary of Strategy

Buy: As close to 0.000215 as possible.

Target: 0.00031

Stop:  0.000205

 

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.