Trade Recommendation: OmiseGO

The OmiseGO/Bitcoin (OMG/BTC) pair started its bear run on September 13, 2017 when it closed below 0.0028. Bulls worked hard to reclaim that level but bears resisted every attempt. Consequently, market participants saw that bears were in absolute control of the market. They responded by shorting the market.

As selling pressure increased, the pair broke the 0.00175 support on October 12. It then generated a series of lower highs and lower lows until it bottomed out at 0.00043237 on December 8. Fortunately for buyers at this level, OMG/BTC has been rallying since, and it looks ready to launch its first ever bull run.

Technical analysis show that OmiseGo/Bitcoin has taken out 0.00175 resistance and triggered the large cup and handle reversal pattern on the daily chart. The breakout was validated by a follow through that saw the pair climb to as high as 0.0023754 on April 26. Currently, the pair is correcting and this could be your opportunity to enter the market at the early stages of its bull run.

The strategy is to buy dips as close to 0.00175 as possible. If bulls preserve this support, the market will likely consolidate for some time before resuming its ascent to our target of 0.0028. Sell immediately as 0.0028 as this is the market’s firmest resistance.

The process may take a month.

Daily Chart of OMG/BTC on Poloniex

As of this writing, the OmiseGO/Bitcoin pair is trading at 0.00198267 on Poloniex.

Summary of Strategy

Buy: Buy on dips as close to 0.00175 as possible.

Target: 0.0028

Stop: 0.00165

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.