Trade Recommendation: Horizen
Horizen (ZEN/BTC) is a market that looks eager to pump up. We have this view because the market has been in accumulation mode for over three months. During this period, Horizen range traded between 0.0011 and 0.00145.
While we did miss the chance to bottom pick the market, we don’t feel that bad because we can always get a good entry point. Horizen’s recent price action provides the reassurance that we’re on the right track.
Technical analysis shows that ZEN/BTC has taken out resistance of 0.00145 on March 12, 2019. This triggered the breakout from the inverse head and shoulders pattern on the daily chart. The bullish price action ignited a rally that propelled Horizen to as high as 0.0019 on the same day.
However, the rally quickly lost steam as it succumbed to the 200-day moving average, which is acting as a resistance. On top of that, the daily RSI is also flashing overbought signals. Lastly, volume has been declining since the breakout. These are all signs of a pullback. They key now is to be patient and wait for Horizen to drop to our desired price level.
The strategy is to buy as close to 0.00145 as possible. The 50-day moving average and the 100-day moving average are crawling around that level. They will act as additional supports to keep the market above 0.00145. Thus, if bulls manage to hold this level, Horizen might rally to our initial target of 0.00183. Take that out and 0.0023 is next.
The process may take less than a month.
Daily Chart of Horizen/Bitcoin on Binance
As of this writing, the Horizen/Bitcoin pair is trading at 0.001614 on Binance.
Summary of Strategy
Buy: As close to 0.00145 as possible.
Targets: 0.00183 and 0.0023.
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.