Trade Recommendation: Mainframe
We’ve been watching Mainframe (MFT/BTC) ever since it breached support of 0.0000013 on November 13, 2018. At that point, we were curious whether the market will establish a bullish higher low at 0.000001 or will it revisit 2018 lows of 0.0000007.
Mainframe chose the latter as it broke below support of 0.000001 on November 30. The retest on December 3 was the confirmation that the market was headed to our range low of 0.0000007. The next question was whether the support will hold. We got the answer to that question recently.
Technical analysis shows that MFT/BTC is respecting support of 0.0000007. This price action has enabled the market to print a double bottom pattern on the daily chart. This means that the market has created a durable bottom and prices likely won’t fall any further. Also, notice how volume surged on January 8, 2019 when the market touched 0.0000007. This tells us that bottom-pickers and bargain hunters are ready to absorb selling pressure at this level.
In addition, we are confident in Mainframe’s technical setup because we’ve seen the same structure in other altcoins. For instance, Zilliqa (ZIL/BTC) has almost the same structure. Zilliqa relied on this pattern to stop the bleeding and generate bullish momentum. We expect MFT/BTC to do the same.
The strategy is to buy as close to 0.0000007 as possible. As long as this Mainframe stays above this level, it will likely rally to our targets of 0.000001 and 0.0000013.
The process may take more than a month.
Daily Chart of Mainframe/Bitcoin on Binance
As of this writing, the Mainframe/Bitcoin pair is trading at 0.00000075 on Binance.
Summary of Strategy
Buy: As close to 0.0000007 as possible.
Targets: 0.000001 and 0.0000013.
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.