Trade Recommendation: Etherparty
The Etherparty/Bitcoin pair (FUEL/BTC) took out resistance of 350 satoshis on October 27, 2018. This triggered the breakout from the rounding bottom pattern on the daily chart. The price action effectively reversed the market’s trend.
In addition, the breakout looks convincing as it was pushed by heavy volume. On October 27, FUEL/BTC generated volume that’s over 200% of its daily average. This attracted breakout traders and trend followers, which ignited a quick rally to 459 satoshis on October 31. At that price level, however, FUEL/BTC was starting to show signs of weakness. This can be your chance to buy the breakout.
Technical analysis shows that FUEL/BTC is at the early stages of a strong bull run. We have several reasons to support this view.
First, the market broke out of the pattern after more than 90 days of consolidation below 350 satoshis. This gave the smart money more than enough time to accumulate positions at the bottom. With this breakout, they are likely to build the next phase in preparation for a pump.
Second, FUEL/BTC may be pulling back now but we can see bulls are starting to buy the dip. A few hours ago there was a long hammer on the 4-hour candle. This indicates the presence of buyers below 400 satoshis.
Lastly, the 50-day, 100-day, and 200-day daily averages are moving below the candles. This tells us that FUEL/BTC is in a healthy uptrend.
The strategy is to buy on dips as close to 350 satoshis as possible. If bulls defend this level, FUEL/BTC will likely generate a rally to our target of 500 satoshis.
The process may take more than a month.
Daily Chart of Etherparty/Bitcoin on Binance
As of this writing, the Etherparty/Bitcoin pair is trading at 375 satoshis on Binance.
Summary of Strategy
Buy: As close to 350 satoshis as possible.
Target: 500 satoshis
Stop: 332 satoshis
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.
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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