Trade Recommendation: Primecoin/Bitcoin
After breaking resistance of 0.00006 on March 22 last year, the Primecoin/Bitcoin pair needed only two months to generate an all-time high of 0.00034869. The market was bullish for another month, until it became toppish on June 28 after failing to close above resistance of 0.00032. As sellers dumped their positions, the pressure overwhelmed buyers and eventually, critical support at 0.00025 broke on July 1st.
The market became extremely bearish at this point. It tumbled to one lower low after another. On October 15, the pair finally settled at 0.000017 where it consolidated for two months and established a new support level. A huge upswing was recorded on December 25 to mark the end of the consolidation period.
Technical analysis show that the pair has created a bullish reversal pattern that hinges on the successful breach of resistance at 0.00006. The market has been threatening to take out that resistance level since December 25, but the bears continue to hold that position. The significant dip in price and in volume levels over the last few days indicate that the bears are running out of ammunition.
The strategy is to buy as close to 0.000044 support as possible. The recent pullback puts the market in a better position to breach 0.00006 in its next attempt.
Daily Chart of Primecoin/Bitcoin on Poloniex
As of this writing, the Primecoin/Bitcoin pair is trading at 0.00004700 on Poloniex.
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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