Trade Recommendation: Pinkcoin
The Pinkcoin/Bitcoin (PINK/BTC) showed signs of bullishness when it breached resistance of 0.0000043 on January 6, 2018. It gathered enough momentum to take the market to as high as 0.00000634 on January 8. At this point, however, the pair flashed overbought signals. Those who bought the breakout at 0.0000043 took profits.
As selling commenced, the market plunged to 0.00000478 on January 11. While the market did rally, it could only reach 0.0000051 on January 12. The lower high snuffed out any bullish steam. PINK/BTC tumbled as a result.
Technical analysis reveals that Pinkcoin/Bitcoin has broken below support of 0.0000043 on January 16. Below this level, the next firm support can be found at 0.0000022. With the current price, it appears that the market is well on its way to this support level.
The strategy is to buy as close to 0.0000022 support as possible. If bulls hold on to this support, it will likely range trade while creating a base. The top end of the range and our target is 0.0000043 resistance. The process may take a month.
Daily Chart of Pinkcoin/Bitcoin on Poloniex
As of this writing, the Pinkcoin/Bitcoin pair is trading at 0.00000252 on Poloniex.
Summary of Strategy
Buy: As close to 0.0000022 as possible.
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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