Trade Recommendation: POWR/BTC
The Power Ledger/Bitcoin pair (POWR/BTC) bottomed out on March 18 at 0.000036 (A-wave). At this price level, the market was already flashing signs of reversal. First is the bullish divergence that can be spotted on the RSI. Second is the hammer candlestick on the daily chart that suggests the presence of buyers below 0.0000395.
Bottom pickers who saw these signs entered the market. Their buying activity inspired a B-wave rally to 0.00006969 on April 24. Unfortunately for buyers at this level, 0.00006 is the 50% Fibonacci level and a firm resistance. This is where bottom fishers took profits, which sent the pair down to 0.00004344 on May 11 (C-wave).
When participants saw that the pair respected the 38.2% Fibonacci level, it ignited a D-wave rally that propelled POWR/BTC to 0.00006521 on May 16. Again, bears defended the 50% Fibonacci level but the price movement is telling us that their days may be numbered.
Technical analysis show that POWR/BTC is preparing to take out resistance of 0.00006. This would trigger the ascending triangle pattern on the daily chart. Instead of buying at the breakout point, you could minimize risk while maximizing your profits if you buy at the next possible higher low.
The strategy is to bottom pick the market and buy as close to 0.0000486 as possible. This price point appears to be the new higher low or the tail end of the E-wave. As long as the market stays above this level, bulls have all the momentum they need to take out 0.00006 and move to our target of 0.00008.
The process can take less than a month.
Daily Chart of POWR/BTC on Binance
As of this writing, the Power Ledger/Bitcoin pair is trading at 0.000488 on Binance.
Summary of Strategy
Buy: As close to 0.0000486 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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