Trade Recommendation: POA Network
Our October 06, 2018 trade recommendation for the POA Network/Bitcoin pair (POA/BTC) hit its target on October 16 when it climbed to as high as 2,040 satoshis. Those who followed the trade recommendation grew their investments by 100% in 10 days. For those who were not able to catch the bottom, don’t worry because there’s another trade opportunity developing.
POA/BTC pulled back immediately after hitting our target. It dropped to 1,421 satoshis on October 29 before bulls came in to lift the market. Now, it is threatening to take out a key resistance and officially start its bull run.
Technical analysis shows that POA/BTC is positioning to take out resistance of 1,800 satoshis. This will trigger the breakout from the cup and handle pattern on the daily chart. We believe the breakout is only a matter of time for a few reasons.
First, bulls successfully flipped resistance of 1,500 into support. POA/BTC is using this new support as a staging ground for the breakout.
Also, the 7-day moving average has moved above the 100-day moving average (MA) and both are under today’s daily candle. This is a bullish crossover as it indicates that the short-term and medium-term trends are on the up and up.
Lastly, we can see the RSI on a healthy uptrend. This tells us that bulls are gaining heavy momentum.
The strategy is to buy the breakout at 1,800 satoshis as long as the market generates volume of 35 million POA Network units. Those who bought the bottom may still take profits at the resistance. The market needs buyers to absorb the selling pressure.
Once breakout is complete, the market will likely rally to our target of 2,600 satoshis. The process may take more than a month.
Daily Chart of POA Network/Bitcoin on Binance
As of this writing, the POA Network/Bitcoin pair is trading at 1,735 on Binance.
Summary of Strategy
Buy: Breakout at 1,800 satoshis after volume of 35 million POA Network units.
Target: 2,600 satoshis
Stop: 1,700 satoshis after the breakout.
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.
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.