Trade Recommendation: Everex

The Everex/Bitcoin (EVX/BTC) market lost all bullishness when it generated a lower high of 0.00034498 on November 9, 2017. Its downtrend was confirmed when it broke below support of 0.0002 on November 17. Since then, the market nosedived until it bottomed out on December 3 at 0.00000183.

After losing 99% of its value in less than a month, the market consolidated for three weeks to repair the damage. It came back to life on December 23 when it went as high as 0.00021186. Sensing some spark, market participants bought positions and pushed the market to as high as 0.00047702 on January 7, 2018. While the market pulled back, it opens an opportunity for you to enter near the higher low.  

Technical analysis reveal that Everex/Bitcoin appears to be creating a bullish reversal structure that relies on the higher low setup at 0.0002. If bulls defend this level, the market has an excellent chance of breaching resistance of 0.0003. Take out that resistance level, and the market launches its very first uptrend.  

The strategy is to buy as close to 0.0002 support as possible or breakout of 0.0003 with volume of around 5 million EVX units. Those who bought the higher low are likely to dump positions at 0.0003 to lock in gains. The market needs the prescribed volume to increase the likelihood of a breakout. The entire process that takes us to our target of 0.00048 may take a month.

Daily Chart of Everex/Bitcoin on Binance

As of this writing, the Everex/Bitcoin pair is trading at 0.000212 on Binance.

Summary of Strategy

Buy: As close to 0.0002 support or possible OR breakout of 0.0003 with volume of around 5 million EVX units.

Target: 0.00048

Stop:  0.00017 if you buy at 0.0002.

 

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.