Trade Recommendation: Golem/Bitcoin

Golem went into full bullish mode after it broke resistance at 0.00006 on March 29 at Poloniex. Within three months, the Golem/Bitcoin pair recorded an all-time high of 0.00027693 on June 19. That’s a whopping 361.55% increase in value in a really short period of time. Unfortunately for buyers at this area, the market’s furious ascent was used by traders to dump positions and take profits.

Golem tumbled faster than it climbed. On August 17, it broke support at 0.00006 and eventually nosedived to long-term support of 0.00002 where the cryptocurrency’s volatile nature is once again observed.

Technical analysis show that Golem created a bullish reversal pattern with breakout point at 0.00006. Take out this resistance level, and we have a target of 0.0001.

The strategy is to buy 0.00006 breakout with BTC volume of 748.04 on Poloniex. While the market is currently in overbought territory, the increase in volume in recent days indicates that the bulls are primed to take out that resistance level.

Daily Chart of Golem/Bitcoin on Poloniex

As of this writing, the Golem/Bitcoin pair is trading at 0.000005894 on Poloniex.

 

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.