Trade Recommendation: Polymath
Polymath (POLY/BTC) is an altcoin that looks ready to end its bear market. We have this view because the bleeding appears to have stopped. In addition, it is showing signals that indicate the transition from distribution (markdown) to accumulation. If our read is correct, bottom pickers can seriously fatten their Bitcoin stack by accumulating Polymath with the smart money.
Technical analysis shows that POLY/BTC has generated a large double bottom pattern on the daily chart. The pattern tells us that a durable bottom is in place. In other words, the smart money have shown their hand by keeping support of 0.00002 intact.
With the bottom end of the range in place, it was not difficult for us to plot the key levels of the market. We have 0.0000377 as range resistance and 0.00002885 as range midpoint.
Thus, we expect Polymath to range trade between 0.00002 and 0.0000377 for several months before it can launch its own bull run. This means that those who are buying now can exploit the range again and again until Polymath takes out the range high of 0.0000377. This is what we mean by seriously fattening your Bitcoin stack.
To further support our bias, we can see a large bullish divergence on the daily chart. With bullish momentum gaining at support of 0.00002, we can expect Polymath to rally soon.
The strategy is to buy as close to 0.00002 as possible. If bulls can stay above this level, they will likely generate a rally to our targets of 0.00002885 and 0.0000377.
The process may take a month.
Daily Chart of Polymath/Bitcoin on Binance
As of this writing, the Polymath/Bitcoin pair is trading at 0.00002163 on Binance.
Summary of Strategy
Buy: As close to 0.00002 as possible.
Targets: 0.00002885 and 0.0000377.
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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