Trade Recommendation: Gifto
The Gifto/Bitcoin pair (GTO/BTC) started to look bullish on January 3, 2018 when it took out resistance of 0.000025. This activated the small rounding bottom pattern on the daily chart. Also, the breakout attracted a lot of momentum that skyrocketed the pair to 0.00007499 on January 12. In a little over a week, the pair rose by almost 200% in value.
At this price level, the market flashed bearish signals. First, the market was extremely overbought. Also, a bearish divergence can be spotted on the RSI. Plus, the market has grown so fast in a short time frame. Savvy traders who bought the breakout saw these signals, so they took profits.
The heavy selling drove the market back down to support of 0.000028 on February 2. From there, GTO/BTC rallied back to 0.00007 resistance on February 15. Once again, the pair succumbed to selling pressure as it dropped to the 23.6% Fibonacci level on March 7. While the pair broke the support of 0.000028 on March 29, bulls came to the rescue and pushed the market close to 0.00007 resistance on May 3.
Technical analysis reveals that GTO/BTC is locked in wide range between 0.000028 – 0.00007. Bulls come out when the market hovers around the 23.8% Fibonacci level. On the other end, bears flex their muscles at the 78.6% Fibonacci level. We’ll follow their lead to generate a profitable trade.
The strategy is to bottom fish the market and buy as close to 0.000028 as possible. If bulls preserve this support, the pair will likely move back to resistance of 0.00007. However, it would be best to start taking profits at the 78.6% Fibonacci level or 0.000058. Charts show that bulls have a hard time going above this price area.
The process may take a month.
Daily Chart of Gifto/Bitcoin on Binance
As of this writing, the Gifto/Bitcoin pair is trading at 0.00003418 on Binance.
Summary of Strategy
Buy: As close to 0.000028 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.
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