Trade Recommendation: Internet of Services (IOST)
The Internet of Services/Bitcoin (IOST/BTC) pair is a market that appears to have carved a bottom and is now looking to trend higher. The bottoming out process began on November 24, 2018 when the market rejected prices below 0.00000114. At that point, IOST/BTC was in extreme oversold territory. This condition attracted bottom-pickers and bargain hunters and enabled the pair to establish support at 0.00000114.
The market traded around this level for over a month up until December 30 when IOST/BTC breached the immediate resistance of 0.0000014. It then flipped the resistance into support on January 1, 2019. The price action was bullish. This gave bulls the momentum to try to take out 0.00000176 on January 9. While they failed back then, we believe that they are ready to breach the resistance now.
Technical analysis shows that IOST/BTC is forming a cup and handle pattern on the 12-hour chart. It appears that bulls are using this structure to attract buying pressure and move above 0.00000176. So far, their strategy seems to be working. Bulls were able to muster above average volume on February 4. This was instrumental in taking out the resistance driving the market to as high as 0.00000181.
The strategy is to buy at the current price level of 0.00000175. Bulls will have an easier time flipping the resistance into support because the 50 moving average is crawling around this area while acting as support.
As long as IOST/BTC doesn’t fall too far below this level, it will likely rally to our initial target of 0.0000026. Take that out and the next target is 0.000003.
The process may take less than a month.
12-Hour Chart of Internet of Services/Bitcoin on Binance
As of this writing, the Internet of Services/Bitcoin pair is trading at 0.00000175 on Binance.
Summary of Strategy
Targets: 0.0000026 and 0.000003.
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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