Trade Recommendation: Ontology
The Ontology/Bitcoin pair (ONT/BTC) has been bearish since June 22, 2018 when it took out support of 0.0009. This activated the double top reversal pattern on the daily chart. The breakout forced those who bought above the support to cut their losses.
The market has been on a steep drop for more than a month. The good news is that ONT/BTC may be on a verge of a price uplift.
Technical analysis show that ONT/BTC is due for a rally. This view comes after the pair broke out of the falling wedge pattern. While this is not readily visible on the daily chart, a quick look at the hourly chart shows a convincing breakout. In addition, this breakout happened because the market is bouncing off of the 23.6% Fibonacci level.
Furthermore, technical indicators are showing bullish readings. The MACD flashed a bullish cross. On top of that, the RSI is in extreme oversold territory. Lastly, the 4-day, 8-day, and 21-day moving averages are all detached from the daily candle’s body. This is a sign that the move down is no longer sustainable.
The strategy is to buy as close to 0.0004 as possible. If the market stays on top of the support, a rally to our initial target of 0.00053 is very likely. Now, 0.00053 is not a firm resistance so it is also possible for the market to go as high as 0.00064.
The process may take a month.
Daily Chart of Ontology/Bitcoin on Binance
As of this writing, the ONT/BTC pair is trading at 0.0004213 on Binance.
Summary of Strategy
Buy: As close to 0.0004 as possible.
Target: 0.00053 first and then 0.00064.
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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