Trade Recommendation: Metal
Metal’s long and brutal bear winter may be finally coming to its end. The market has been on a slump ever since it recorded highs of 0.0021 on October 14, 2017. Fast-forward to today and Metal is trading at the 0.00008 levels. That’s a devaluation of roughly 96% in less than a year and a half.
Nevertheless, Metal is starting to show signs of recovery. The price action over the last two months affirms this assertion.
Technical analysis shows that MTL/BTC may have finally bottomed out. This view comes after volume suddenly came to life on January 24, 2019. On that day, the market printed volume that’s over 300% of its daily average. Looking at Metal’s chart on Binance, this is the highest volume ever generated. This is a clear sign of selling climax or capitulation.
On top of that, volume stayed significantly elevated ever since. Even though volume was surging, the trading range remained relatively narrow. This is a strong sign that bulls are accumulating positions in bulk at current levels.
As buying increased, the market is now creating a symmetrical triangle on the daily chart. This indicates that the trading range is coiling in preparation for a big move. We’re confident that the direction is up.
The strategy is to buy as close to 0.000076 as possible. As long as Metal trades above this level, bulls will likely gather the momentum to climb to our targets of 0.000145 and 0.0002.
The process may take less than a month.
Daily Chart of Metal/Bitcoin on Binance
As of this writing, the Metal/Bitcoin pair is trading at 0.0000818 on Binance.
Summary of Strategy
Buy: As close to 0.000076 as possible.
Targets: 0.000145 and 0.0002.
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.