Trade Recommendation: ICON

The ICON/Bitcoin (ICX/BTC) pair breached resistance of 0.00009 on August 17, 2018. This enabled the pair to break out from the large falling wedge pattern on the daily chart. The price action attracted breakout players who helped push the market to as high as 0.0001458 on August 27.

At that point, the market started to pull back as some bottom pickers and breakout traders took profits. ICX/BTC dropped to 0.0000842 on September 12 before bulls swooped in and lifted the market above the breakout. This price action indicated that the end of the consolidation is in sight.

Technical analysis shows that ICX/BTC is carving a bullish higher low setup at 0.00009. This is a very encouraging signal because it validates the breakout and gives participants a key support area to rely on. More importantly, it confirms our view that the market is in the early stages of an uptrend.

In addition, ICX/BTC has been relatively quiet for about a couple of weeks, but that changed yesterday when price, RSI, and volume suddenly surged. This might be an indication that the market is ready to resume its uptrend.

The strategy is to buy as close to 0.00009 as possible. As long as the market is above this level, it has the momentum to rally to our target of 0.00018.

The process may take less than a month.

Daily Chart of ICON/Bitcoin on Binance

As of this writing, the ICON/Bitcoin pair is trading at 0.0000987 on Binance.

Summary of Strategy

Buy: As close to 0.00009 support as possible.

Target: 0.00018

Stop: 0.000084

 

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.