Trade Recommendation: Populous
The Populous/Bitcoin (PPT/BTC) pair took out resistance of 0.00056 on August 16, 2018. The breach triggered the breakout from the large falling wedge on the daily chart. The breakout looks valid because it was followed by a surge in volume and price. PPT/BTC managed to climb to as high as 0.00108 on August 17.
Unfortunately, the rally was seen as an opportunity to take quick profits. Those who bought the bottom and the breakout dumped positions. With the market flooded with supply. PPT/BTC pulled back. Nevertheless, we have reasons to believe that the retracement is over.
Technical analysis shows that PPT/BTC is respecting support of 0.0005. This view comes after bulls managed to keep the pair above this level since September 12. Every time bears try to breach the support, bulls gather their forces to lift the market above the support.
This encouraging sign is affirmed by the growing momentum, which you can see on the RSI. Since June 23, the market has been posting a series of RSI higher lows. This indicates that bulls are no longer waiting for extreme oversold conditions before stepping up. Little by little, bulls are working to swing momentum over to their side.
The strategy is to buy as close to 0.0005 support as possible. As long as the market is above this level, there’s a very good chance that it will revisit our target of 0.001.
The process may take less than a month.
Daily Chart of Populous/Bitcoin on Binance
As of this writing, the Populous/Bitcoin pair is trading at 0.0005337 on Binance.
Summary of Strategy
Buy: As close to 0.0005 support 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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