Trade Recommendation: Nexium
The Nexium/Bitcoin pair (NXC/BTC) lost all bullish momentum on October 6, 2017 when it created a lower high of 0.00007885. Things went from bad to worse for the market when it broke below 0.00005 support on October 9. From that point, NXC/BTC generated consecutive lower highs and lower lows until it bottomed out near 0.000011 support on December 11.
Having lost over 85% of its value from the lower high, the pair immediately bounced after finding the bottom. It went as high as 0.00005399 on January 9, 2018. However, bears were not ready to surrender 0.00005 resistance. They repelled the advance, and sent the market into a freefall as Nexium/Bitcoin took out 0.000035 on February 1 and 0.0000025 on February 18. While the pair is definitely in a downtrend, it offers you the chance to pick the bottom.
Technical analysis show that Nexium/Bitcoin is well on its way down to 0.000011 support. This is the market’s strongest support. Bulls have defended it since December 2016. In addition, RSI is on track to flash oversold readings once the market touches 0.000011. This should provide selling relief that can ignite a rally.
The strategy is to buy as close to 0.000011 support as possible. If the market continues to respect this level, it will likely create a base before marching to our target of 0.000025. The process may take a month.
Daily Chart of Nexium/Bitcoin on Poloniex
As of this writing, the Nexium/Bitcoin pair is trading at 0.00001681 on Poloniex.
Summary of Strategy
Buy: As close to 0.000011 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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