Trade Recommendation: OmiseGo
The OmiseGo/Bitcoin pair (OMG/BTC) came off lows of 0.00053566 on August 14, 2018. At that point, the pair was down by over 77% from the 2018 high of 0.0023754. This type of plummet might discourage retail investors. However, if you’re following our trade recommendations, you get the sense that bearish exhaustion is becoming a trend in many altcoins. The same appears to be true for OMG/BTC.
Technical analysis show that OMG/BTC is positioning to breakout from the long descending channel. This pattern has kept the market bearish for over four months. This view comes after bottom fishers and bargain hunters bought the historic support of around 0.00053. On that day, OMG/BTC printed volume thats over 400% of its daily average.
On top of that, we can see the RSI break out from its own large falling wedge. While it still needs to deal with resistance of 45, the higher lows suggest that bulls are gathering significant momentum.
The strategy is to buy the breakout at 0.00063. Ideally, the breakout is pushed by heavy volume of at least 40,000 OmiseGo units. Those who bought the bottom might take some profits at the breakout. The market needs buyers to absorb the selling pressure.
Initial target is 0.001.
The process may take less than a month.
Daily Chart of OmiseGo/Bitcoin on Poloniex
As of this writing, the OmiseGo/Bitcoin pair is trading at 0.00061534 on Poloniex.
Summary of Strategy
Buy: Breakout at 0.00063 with volume of at least 40,000 OmiseGO units.
Stop: 0.00061 after the breakout.
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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