Trade Recommendation: LBRY Credits/Bitcoin

On May 8, the LBRY Credits/Bitcoin pair broke initial resistance of 0.00007. The breakout propelled the market to an all-time high at 0.00038478 on June 21. The pair’s rapid climb was its undoing. On June 28, it recorded a lower high at 0.0002862. What followed next was a scramble to get out of the market as the pair crashed below 0.000125 on July 11.

It took the market five months to find stability. It established support at 0.000015 on December 7. Since then, the market has been rallying. It even attempted to break resistance of 0.00007 again.

Technical analysis reveal that the market is well on its way to creating a bullish reversal pattern. Although it retreated after briefly going above 0.00007, the pullback is healthy. It helps the market find a fresh batch of investors who are most likely to hold on to their positions. More importantly, the recent dip provides you an opportunity to buy cheap.  

The strategy is to buy as close to 0.000055 support as possible. The recent pullback gives the market a better chance to successfully take out resistance at 0.00007 in its next attempt.

Daily Chart of LBRY Credits/Bitcoin on Poloniex

As of this writing, the LBRY Credits/Bitcoin pair is trading at 0.00006023 on Poloniex.

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, 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.