Trade Recommendation: Omni
The Omni/Bitcoin pair exhausted its bull run on July 6, 2017 when it generated a lower high at 0.0253. The downtrend was confirmed when the market broke support at 0.02 on July 11, which triggered a bearish head and shoulders reversal pattern. It then created a series of lower lows and lower highs until it found the bottom at 0.00241466 on November 2. The market lost 87.93% of its value within four months after reversing its trend.
However, it quickly established firm support at 0.0025 after bottoming out. It consolidated at that support level for a month until it broke resistance at 0.0045 on December 21. The market managed to go as high as 0.0087 before breakout players and bottom pickers stepped in to take profits. The pair retreated, but it provided a window of opportunity for you to buy cheap.
Technical analysis show that the market is creating a bullish higher low set up at 0.0045. The important thing to note is the astronomical surge in volume on January 27. The daily average of bitcoin volume for this market was around 20 BTCs, but on January 27, the volume skyrocketed to 676.16 BTCs. This is an encouraging sign because that means more participants are holding positions around 0.0045.
The strategy is to buy as close to 0.0045 as possible. Should bulls defend this level, the market will attempt to breach resistance at 0.009 in one month.
Weekly Chart of Omni/Bitcoin on Poloniex
As of this writing, the Omni/Bitcoin pair is trading at 0.00469721 on Poloniex.
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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