Trade Recommendation: OAX
The OAX/Bitcoin pair (OAX/BTC) started its uptrend on December 30, 2017 when it took out resistance of 0.00006. The breakout attracted so much momentum that it became parabolic on the daily chart. Powered by its supercharged velocity, the pair rose to 0.000199 on January 13, 2018. In a couple of weeks, OAX/BTC grew by over 231%.
At this price point, the pair was showing bearish readings. First, it was in overbought territory. Second, bulls failed to close above 0.0002 after a couple of attempts indicating that the resistance has been validated. Lastly, the daily candle on January 13 had a long wick above the body. This told participants that there were plenty of sellers above 0.00015.
With bears flexing their muscles, OAX/BTC dropped to 0.00007672 on January 16. While bottom pickers bought the dip, they could only manage a rally to 0.000155 on January 23. With a lower high in place, the market plummeted. It bottomed out at 0.00005419 on March 18.
Even though the pair managed to rally massively to 0.000159 on April 29, it has been dropping since. This could be your chance to bottom pick the market.
Technical analysis reveals that OAX/Bitcoin has broken below the 38.2% Fibonacci level on May 7. Below this support, the next firm support is the 23.6% Fibonacci level, which is 0.00006. That’s where we’ll come in to the market.
The strategy is to buy as close to 0.00006 as possible. As long as bulls preserve this level, they will likely spark a rally to the top end of our range and our target of 0.00011.
The process may take a month.
Daily Chart of OAX/Bitcoin on Binance
As of this writing, the OAX/Bitcoin pair is trading at 0.00006994 on Binance.
Summary of Strategy
Buy: Buy as close to 0.00006 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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