Trade Recommendation: Komodo/Bitcoin

The Komodo/Bitcoin (KMD/BTC) pair ignited its bull run on December 20, 2017 when it took out 0.00045 resistance. Using the strong base below 0.0004, the market skyrocketed to as high as 0.0012598 on January 4, 2018. In about two weeks, KMD/BTC grew by almost 180%. Those who bought the breakout took the chance to lock in gains.

Faced with heavy selling pressure, the market plummeted to 0.0004513 on January 5. Bottom pickers bought the dip and carried the market to 0.0009999 on January 6. However, those who bought above 0.001 on January 4 saw the rally as an opportunity to minimize their losses. The increased selling pressure forced bottom pickers to quickly take profits.   

With sellers dominating the market, KMD/BTC snapped 0.00045 support on February 19. It then generated a series of lower highs and lower lows until it bottomed out at 0.0002866 on March 18. The pair has been rallying since, and it looks ready to resume its bull run.

Technical analysis show that KMD/BTC is in the process of breaching 0.00045 resistance. To complete the breakout, bulls must print at least 1 million units of Komodo in volume. Those who bought above 0.00045 on April 14 might dump positions to minimize losses. The market needs buyers to absorb the selling pressure.

The strategy is to buy the breakout at 0.00045 as long as the prescribed volume is met. If bulls take out the resistance, the market may zoom to our target of 0.00057. The process may take less than a month.

Daily Chart of KMD/BTC on Binance

As of this writing, the Komodo/Bitcoin pair is trading at 0.0004477 on Binance.

Summary of Strategy

Buy: Breakout at 0.00045 with 1 million Komodo volume.

Target: 0.00057

Stop: 0.0004230 after the breakout.

 

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.