Trade Recommendation: POA
The POA/Bitcoin pair (POA/BTC) started its uptrend on April 7, 2018 when it took out resistance if 0.00006. This activated the cup and handle reversal pattern on the daily chart. The breakout pushed the market to as high as 0.00010248 on May 10. In a month, the pair grew by 70%.
At this price level, the target of the cup and handle pattern was already achieved. This inspired those who bought the breakout to take profits. As the market succumbed to heavy selling, POA/BTC broke 0.00006 support on May 22. The pair has been bearish since but it has opened an opportunity for you to buy the bottom.
Technical analysis reveal that POA/BTC appears to respect support of 0.000034. This view comes after the pair went below the support on June 30 but bulls came to the rescue. In addition, the market is still near oversold levels. Plus, the 4-day, 8-day, and 21-day moving averages are reversing their direction. These indicators tell us that we may expect a rally soon.
The strategy is to buy as close to 0.000034 support as possible. As long as bulls stay above this level, they will attract the momentum needed to lift the market to our initial target of 0.00005. We’ll revisit the trade once the target is hit.
The entire process might take less than a month.
Daily Chart of POA/Bitcoin on Binance
As of this writing, the POA/Bitcoin pair is trading at 0.00003598 on Binance.
Summary of Strategy
Buy: As close to 0.000034 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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