Trade Recommendation: Nano
The Nano/Bitcoin pair (NANO/BTC) breached resistance of 0.00026 on August 21, 2018. The breakout was followed up by a rally that saw Nano climb to as high 0.000567 on August 26. Volume on that day soared by more than 300% of the daily average.
Unfortunately, the market was in extreme overbought territory. This prompted breakout buyers and bottom pickers to take profits. As heavy selling commenced, the breakout rally faded and the pair corrected.
About two weeks later, it seems that the pullback is over.
Technical analysis show that NANO/BTC is respecting support of 0.00026. The market dropped to as low as 0.0002567 today. Bulls came to the rescue and kept the pair above the support. In addition, the market is in extreme oversold territory on the hourly chart. This should provide a selling relief that can help bulls defend the support.
In addition, pullbacks after a breakout rally are the norm. Breakouts generate a lot of momentum, which causes technical indicators such as the RSI to overheat. A dip is necessary to keep the run sustainable. Nano should remain bullish as long as it is above the new support.
The strategy is to buy as close to 0.00026 as possible. If bulls can stay above this level, then that market has created a higher low setup. That will most likely generate a rally to our target of 0.0005.
The process may take less than a month.
Daily Chart of Nano/Bitcoin on Binance
As of this writing, the Nano/Bitcoin pair is trading at 0.0002681 on Binance.
Summary of Strategy
Buy: As close to 0.00026 as possible.
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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