Trade Recommendation: Modum/Bitcoin
The Modum/Bitcoin pair (MOD/BTC) launched its bull run on December 30, 2017 when it breached resistance of 0.00035. With a solid base between 0.0001 and 0.00035, the market quickly ascended to 0.000935 on January 8, 2018. In a little over a week, the market grew by over 167%. Those who bought the breakout took the chance to lock in their gains.
As breakout players dumped position, the MOD/BTC dropped to 0.0004012 on January 16. Bulls bought the dip, but they were only able to carry the market to 0.0006428 on January 25.
The lower high was an indication that bulls were out of steam. Investors and traders responded by taking profits or cutting positions. As a result, the pair generated a series of lower lows and lower highs until it bottomed out at 0.000188 on March 18. MOD/BTC has been rallying since and it seems ready to end its corrective period.
Technical analysis show that Modum/Bitcoin is creating an inverse head and shoulders pattern on the daily chart with the breakout point at 0.00035. To complete the breakout, bulls must print around 1.5 million units of Modum. Those who bought the higher low at 0.00022 levels are likely to sell at the resistance. The market needs buyers to absorb the selling pressure.
The strategy is to buy the breakout at 0.00035 after the prescribed volume is met. If bulls succeed in taking out the resistance, they may quickly gather the momentum to reach our target of 0.0005. The process may take less than a month.
Daily Chart of MOD/BTC on Binance
As of this writing, the Modum/Bitcoin pair is trading at 0.0002902 on Binance.
Summary of Strategy
Buy: Breakout at 0.00035 with 1.5 million Modum volume.
Stop: 0.00032 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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