Trade Recommendation: Enigma

The Enigma/Bitcoin (ENG/BTC) pair launched its bull run on January 1, 2018 when the market took out resistance of 0.0002. The breakout attracted momentum players which allowed the pair to go as high as 0.00057850 on January 10. In 10 days, the market increased by almost 190%. The rapid growth inspired participants to take profits.

As selling pressure increased, the market went as low as 0.00027059 on January 16. While it did bounce on January 21 and reached 0.00046888, the pair gradually declined in value until it found support at 0.00028 on February 6. Generating support at this level was seen by participants as bullish. As a result, the market responded with a surge in price and volume.

Technical analysis reveal that the ENG/BTC pair broke out of a bullish continuation pattern on February 9 when it went as high as 0.00040090. The extremely heavy volume that pushed the price up validates the breakout. Moreover, the market is way below overbought territory, so it has a lot of space for another move up.

The strategy is to buy as close to 0.0003 support as possible. The breakout is often followed by a brief consolidation period. Take this chance to buy at an optimal price point. Once consolidation is over, the market will likely resume its ascent to our target of 0.00055. The process might take about a month.   

Daily Chart of Enigma/Bitcoin on Binance

As of this writing, the Enigma/Bitcoin pair is trading at 0.00032297 on Binance.



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, 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.