Trade Recommendation: HyperCash
HyperCash (HC/BTC) is giving us bullish price action. It dropped to as low as 0.0001714 on December 8, 2018. At that point, the market was in danger of breaching support of 0.000175. Bulls struggled for a few days to keep the market above the support. Fortunately on December 11, market participants finally felt that a durable bottom was in.
With a bottom in place, HyperCash ignited a massive rally that enabled the market to take out multiple resistances and climb as high as 0.000553 on January 12, 2019. While the market is currently pulling back, this gives us the opportunity to buy the dip.
Technical analysis shows that HC/BTC is likely to establish a bullish higher low setup of 0.00029. This view comes after the market gave us two solid resistance to support flips.
The first one was on January 15 when the market wicked down to 0.0002502. The strong rejection of lower prices indicates the presence of buyers at that price level. In addition, the 100-day moving average also acted as support and helped to keep the price from falling any further.
The second one was on January 18 when the market wicked down to 0.0002897. The price rejection doesn’t look strong so it is very likely that HyperCash revisits 0.00029 soon.
The market also appears ready to break out from a bullish pattern. Lastly, the market is approaching the apex of a large falling wedge on the 1-hour chart. With sellers losing steam, we expect the market to break out of this pattern once it revisits 0.00029.
The strategy is to buy on dips as close to 0.00029 as possible. As long as HyperCash stays above this level, it will likely gather the momentum to break out of the falling wedge and rally to our target of 0.000366.
The process may take less than a month.
1-Hour Chart of HyperCash/Bitcoin on Binance
As of this writing, the HyperCash/Bitcoin pair is trading at 0.000306 on Binance.
Summary of Strategy
Buy: As close to 0.00029 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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