Trade Recommendation: Nuls/Bitcoin
The Nuls/Bitcoin pair (NULS/BTC) started its bull run on December 30, 2017 when it took out resistance of 0.00015. This triggered the large rounding bottom reversal pattern on the daily chart. The pair immediately became parabolic as it skyrocketed to as high as 0.0005899 on January 10, 2018. In less than two weeks, NULS/BTC grew by over 293%.
At this point, the market was in extreme overbought territory. Breakout players and trend followers exploited the opportunity to take profits. The pair plunged to 0.0002914 on January 16 before bottom pickers entered the picture and bought the dip. The renewed buying activity pushed NULS/BTC to 0.00053877 on January 18.
Unfortunately for buyers at this level, the bulls were out of steam. With a lower high in place, the market went into a downward spiral that sent it to as low as 0.00013 on February 6. The pair then range traded between 0.00025 – 0.00040 until yesterday, April 28, when bulls decided to step it up.
Technical analysis show that Nuls/Bitcoin has taken out resistance of 0.0004 with above average volume. However, it appears that bears are working hard to defend the resistance. In addition the market is beginning to flash overbought readings. A slight pull back may be in order to keep the ascent sustainable.
The strategy is to buy on dips as close to 0.00037 as possible. If bulls manage to stay above this level, they would have created a higher low that can propel the market to our target of 0.00055. Sell immediately because 0.00055 is the pair’s firmest resistance.
The process may take more than month.
Daily Chart of NULS/BTC on Binance
As of this writing, the Nuls/Bitcoin pair is trading at 0.00040036 on Binance.
Summary of Strategy
Buy: On dips as close to 0.00037 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.
Featured image courtesy of Shutterstock.