Trade Recommendation: Ontology
The Ontology/Bitcoin (ONT/BTC) pair took out resistance of 0.00022 on August 16, 2018. The breach triggered the breakout from the large descending channel on the daily chart. The price action inspired a rally that saw ONT/BTC climb to as high as 0.0004357 on August 18.
At that point, bottom pickers and breakout players took profits. As a result, the pair slid to 0.0002514 on September 12 before bulls took charge and ended the consolidation period.
Technical analysis shows that Ontology/Bitcoin has broken out of a bullish pennant pattern on the daily chart. The breakout happened yesterday, September 21, when the pair took out resistance of 0.0003.
Technical indicators are backing up our view. The volume of ONT/BTC has been decreasing after the pair broke out from the descending channel on August 16. Volume reduction is a key characteristic of a bullish consolidation. Yesterday, however, volume significantly increased, which most likely signals the resumption of the uptrend.
We can see the same action on the RSI. Momentum surged as the pair broke out of the bullish pennant.
The strategy is to buy at the current price level of 0.0003. If bulls can stay above this level, they will attract the momentum required to rally to our target of 0.00055.
The process may take less than a month.
Daily Chart of Ontology/Bitcoin on Binance
As of this writing, the Ontology/Bitcoin pair is trading at 0.0003 on Binance.
Summary of Strategy
Buy: At current price level of 0.0003.
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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