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.

Target: 0.0000043

Stop: 0.000002

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.