Trade Recommendation: Lisk
Lisk (LSK/BTC) is an altcoin that’s looking to end its fifteen-month long bear market.
The market appears to have carved a bottom when it established support of 0.0003 in February 2019. This enabled Lisk to range trade between 0.0003 and 0.00042. With a tradeable range in place, participants created a base that Lisk can use as a launchpad to ignite a bull run. It seems that their hard work is about to pay off.
Technical analysis shows that LSK/BTC is poised to take out range high of 0.00042. We have several reasons to support this view.
Just like other altcoins that we’ve recently covered, Lisk has tapped the range resistance multiple times while in accumulation. The strength of this supply area is almost drained. In fact, Lisk would have likely taken out the resistance yesterday, April 2, if bottom pickers had not panic sold due to the Bitcoin surge.
In addition, Lisk appears to be carving a higher low setup just around the 200-day moving average (MA). This is bullish. With the 200-day MA acting as support, it will help push the price up and take out the range resistance.
The strategy is to buy at the breakout and retest of 0.00042. A move above 0.00042 will trigger the breakout from an inverse head and shoulders pattern. If bulls successfully flip the resistance into support, our targets are 0.0006 and 0.0008.
The process may take a month.
Daily Chart of Lisk/Bitcoin on Binance
As of this writing, the Lisk/Bitcoin pair is trading at 0.0004111 on Binance.
Summary of Strategy
Buy: Breakout and retest of 0.00042.
Targets: 0.0006 and 0.0008.
Stop: 0.0004 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.
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