Trade Recommendation: OST
OST (OST/BTC) has been carving a bottom since it printed a 2018 low of 0.00000362 on August 14, 2018. At that point, the market was showing signs that it was ready for a relief rally since OST was oversold on the daily chart. On top of that, there was a large bullish divergence. These signals attracted bottom pickers and bargain hunters who helped the market rally to as high as 0.00001181 on September 25.
If OST was still bearish, it would have likely revisited support of 0.000004. However, the market printed a higher low of 0.00000496 on November 20. This was the first sign that a short-term bottom was likely in. This assumption was affirmed by last month’s price action, which gives us the confidence to think about going long on the market.
Technical analysis shows that OST/BTC looks ready to reverse its trend. It is creating an ascending triangle pattern on the daily chart. Also, the market generated a higher low of 0.00000602 recently. The second higher low tells us that participants are starting to feel the fear of missing out.
Currently, OST is trading around the range midpoint of 0.0000063. The accumulation at this level indicates that bulls are establishing a higher base, something that’s close to range resistance of 0.0000088. Should bulls once again spark a rally to 0.0000088, they will likely take out the resistance.
The strategy is to buy at the current price of 0.0000063. As long as OST stays above this level, it will likely climb to our range high of 0.0000088. Take that out and the next target is 0.000012.
The process may take more than a month.
Daily Chart of OST/Bitcoin on Binance
As of this writing, the OST/Bitcoin pair is trading at 0.0000063 on Binance.
Summary of Strategy
Targets: 0.0000088 and 0.000012
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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