Trade Recommendation: Kyber Network
The Kyber Network/Bitcoin pair (KNC/BTC) began to look bearish on February 14, 2018 when it broke below support of 0.0003. This ignited a selling frenzy that drove the pair down to 0.00010859 on March 18. The move down was so quick that the pair lost almost 65% of its value in a month.
At this price level, KNC/BTC was showing signs of strength. First, it was in extreme oversold territory. Second, bulls were able to preserve the support on April 6 when the market pulled back after a brief rally. This was a confirmation that a higher low was in place.
With a bullish setup, bottom pickers entered the buying picture. They sparked a strong rally that saw the pair go as high as 0.00038386 in April 26. While the pair has been correcting since, this could be your opportunity to buy the next higher low.
Technical analysis show that Kyber Network/Bitcoin is creating a symmetrical triangle pattern on the daily chart. It appears to be in the latter stages of an E-wave, which is usually the last leg down before a breakout. It is currently pulling back from a strong three-day rally from May 31 – June 2. This could be your chance to buy the confirmation of the breakout.
The strategy is to buy the higher low as close to 0.000165 as possible. If bulls can hold on to the support, they may ignite a rally that can break the market out of the triangle formation. Initial target is 0.0004.
The process may take a month.
Daily Chart of Kyber Network/Bitcoin on Binance
As of this writing, the Kyber Network/Bitcoin pair is trading at 0.00017549 on Binance.
Summary of Strategy
Buy: As close to 0.000165 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.
Featured image courtesy of Shutterstock.