Trade Recommendation: Metal/Bitcoin

The Metal/Bitcoin pair (MTL/BTC) lost its bullish steam on October 26, 2017 when it generated a lower high of 0.001749. Things went from bad to worse for the pair when it broke below 0.0012 support on October 31. From that point, MLT/BTC created a series of lower highs and lower lows until it bottomed out at 0.000251 on December 8.

With a bottom in place, bottom pickers bought positions and pushed the market to as high as 0.000848 on January 4, 2018. Unfortunately for buyers at this level, bears were not ready to give up the resistance. They sent the market spiralling back down to below 0.0004 support on January 18. Since then, MTL/BTC has been creating a base at this support level. This could be a good chance for you to enter the market before it flies.

Technical analysis show that market participants are accumulating positions at 0.0004 support. This can be seen in surges in volume whenever the market is near this level. It happened on January 6, February 5, February 22, February 25, and March 13. One can assume that a significant percentage of participants holding MTL/BTC positions have bought around 0.0004 support. Eventually, sellers will lose ammunition, and that can ignite a rally.

The strategy is to buy as close to 0.0004 support as possible. If the market holds this level, participants will use it as a base to climb to our target of 0.0008. The process may take a month.

Daily Chart of Metal/Bitcoin on Binance

As of this writing, the Metal/Bitcoin pair is trading at 0.000451 on Binance.

Summary of Strategy

Buy: As close to 0.0004 as possible.

Target: 0.0008

Stop:  0.00037

 

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, InvestorAcademy.org 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.

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