Trade Recommendation: EOS
EOS (EOS/Bitcoin) is one of the large-cap altcoins that closed 2018 strong, relatively speaking. After printing a fresh 2018 low of 0.0004721 on December 7, 2018, it quickly reversed its direction and climbed as high as 0.0007523 on December 18. In less than two weeks, this coin grew by more than 59%.
Bottom pickers and bargain hunters were quick to exploit the rally. With heavy selling activity, EOS pulled back. If the market was still bearish, the expected scenario would be a slow bleed back to the bottom. However, the price stood firm as it generated a bullish higher low set up of 0.00062. This gave us the confidence to consider a long position in the market.
Technical analysis shows that EOS/BTC has quietly breached resistance of 0.00069. This area is a key price level for the market. In March 2018, this crypto took out this resistance and retested it as a support in a span of two weeks. This sparked a parabolic run that catapulted the price to as high as 0.00244 in April 2018. Now that the altcoin has recovered this level, we expect the market to gather more bullish momentum.
In addition, the technical setup in the shorter time frame looks bullish. A quick look at the 4-hour chart reveals a golden cross between the 50 MA and the 100 MA. With this crossover, we have the ideal alignment where the 50 MA, 100 MA, and 200 MA all act as support. This setup should help EOS trend higher.
The strategy is to buy on dips as close to 0.00069 support as possible. As long as EOS stays above this level, it will likely gather the momentum to rally to our target of 0.000904.
The process may take less than a month.
Daily Chart of EOS/Bitcoin on Binance
As of this writing, the EOS/Bitcoin pair is trading at 0.000704 on Binance.
Summary of Strategy
Buy: As close to 0.00069 as possible.
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.