Trade Recommendation: Neblio
Neblio (NEBL/BTC) came off lows of 0.0002133 on August 14, 2018. At that price level, the market was down by over 95% from the 2018 peak of 0.004574. Even though this plummet puts Neblio on the list of the worst cryptocurrency performers of 2018, there’s still an opportunity to trade the market. Like in the case of our recent trades, we’ll try to pick up Neblio at a support area and sell it at the range high.
Technical analysis shows that NEBL/BTC has established a double bottom pattern on the 4-hour chart. On November 20, the market dropped close to the yearly low of 0.002133. However, lower prices were quickly rejected indicating that a short-term bottom has been established.
As participants noticed the formation of the double bottom pattern, they started to long the market near the range low of 0.0002133. The buying activity sparked a rally that sent Neblio close to the range midpoint of 0.0003133. The rally was met by heavy selling as bottom pickers tried to lock in gains. Nevertheless, bulls bought the dip to put the market in the position to take out the range midpoint with a great technical setup.
Additionally, Neblio’s 4H chart is looking really good. We’ve recently spotted three golden crosses from December 14 – December 16. The 50 moving average (MA) crossed above the 100 MA and the 200 MA. On top of that, the 100 MA moved above the 200 MA. What we have here is an alignment of moving averages suggesting that the market has a strong bullish sentiment.
The strategy is to buy on dips as close to the 200 MA of 0.000264 as possible. As long as Neblio respects the 200 MA, it will likely have the momentum to rally to our target of 0.0004132.
The process may take a month.
4-Hour Chart of Neblio/Bitcoin on Binance
As of this writing, the Neblio/Bitcoin pair is trading at 0.0002971 on Binance.
Summary of Strategy
Buy: As close to 0.000264 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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