Trade Recommendation: OmiseGo/Bitcoin

Based on its Poloniex chart, it appears that the OmiseGo/Bitcoin (OMG/BTC) market had an initial coin offering (ICO) at a price of 0.0075 on September 12, 2017. Unfortunately for ICO investors, the pair lost almost 63% of its value on its ICO day as it closed at 0.00280934. From that point, OMG/BTC was on a free fall until it bottomed out at 0.00043237 on December 8.

In less than three months, the market shred almost 94% of its value which is why it quickly bounced after finding the bottom. It reached 0.00183431 on January 13, 2018 before flashing overbought readings. Bottom pickers exploited the pair’s rapid ascent, and sent it back to as low as 0.00118222 on February 6. Sensing that a higher low was in place, participants bought positions, and pushed the market up.  

Technical analysis show that OmiseGo/Bitcoin has broken out of a bullish reversal pattern when it breached resistance of 0.00175 on February 27 with above average volume. The market is currently consolidating from the breakout. However, it seems that bulls are prepared to defend 0.00175.  

The strategy is to buy as close to 0.00175 support as possible. If the market respects this new support level, it will likely explode to our target of 0.003. The process may take a month.

Daily Chart of OmiseGo/Bitcoin on Poloniex

As of this writing, the OmiseGo/Bitcoin pair is trading at 0.00176148 on Poloniex.

Summary of Strategy

Buy: As close to 0.00175 as possible.

Target: 0.003

Stop:  0.00155

 

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.