Trade Recommendation: Omni

The Omni/Bitcoin pair (OMNI/BTC) flashed signs of bullishness on December 21, 2017 when it took out resistance of 0.005. It was able to gather enough momentum to push the price up to 0.0087 on December 31. In just 10 days, the market rose by 74%. Breakout players took that chance to lock their gains.

As sellers took over the market, OMNI/BTC pulled back to 0.00501651 on January 5, 2018. While bottom pickers bought the dip, they were only able to send the price to as high as 0.00830001 on January 9. The lower high snuffed out the market’s momentum, and bears exploited the opportunity to send the pair into a nosedive.

Technical analysis reveal that Omni/Bitcoin has broken below 0.005 and 0.0035 support levels. Below these price points, the only remaining firm support is 0.0026. The market has respected this level since June 2016. In addition, OMNI/BTC has always used 0.0026 to create a base and launch a bull run. For now, we can anticipate the bottom and trade the range.  

The strategy is to buy as close to 0.0026 as possible. If the market continues to respect this support, it will likely consolidate at this price before it can ascend to our target of 0.005. The process may take more than a month.

Daily Chart of Omni/Bitcoin on Poloniex

As of this writing, the Omni/Bitcoin pair is trading at 0.00343407 on Poloniex.

Summary of Strategy

Buy: As close to 0.0026 as possible.

Target: 0.0057

Stop:  0.0025

 

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.