Trade Recommendation: Gas

The Gas/Bitcoin pair (GAS/BTC) launched its bull run on December 30, 2017 when it took out resistance of 0.002. The breakout was so strong that the pair went as high as 0.007139 on January 30, 2018. In one month, the market grew by over 250%. That was more than enough for breakout players to lock in their gains.

As sellers dominated the market, GAS/BTC nosedived to 0.003697 on February 22. While the market did rally, bottom pickers could only push the price to as high as 0.0044 on February 26. Sensing that a higher low was established, participants dumped shares. The market went below 0.004 support on February 27. Since then, the market has been taking out one support level after another until recent events.

Technical analysis reveal that Gas/Bitcoin appears to be respecting 0.002 support. The pair went as low as 0.00195072 on March 18 before bulls stepped in to defend the support level. The market has bounced since, but volume has been thin so we might see GAS/BTC retest 0.002 support before it climbs to the top end of our range.

The strategy is to buy as close to 0.002 as possible. If bulls preserve this level, the market will likely create a base at this price before it can ascend to our target of 0.004. The process may take more than a month.

Daily Chart of Gas/Bitcoin on Poloniex

As of this writing, the Gas/Bitcoin pair is trading at 0.00244803 on Poloniex.

Summary of Strategy

Buy: As close to 0.002 as possible.

Target: 0.004

Stop:  0.0019

 

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.