Trade Recommendation: Qtum
The Qtum/Bitcoin (QTUM/BTC) pair looked bearish on February 17, 2018 when it broke below support of 0.003. This triggered the triple top reversal pattern on the daily chart. The break below the support ignited a selling frenzy as those who bought above the support cut their losses. As a result, the pair lost over 50% of its value as it dropped to 0.001492 on March 18 before any noticeable bounce.
While QTUM/BTC was able to climb to 0.002731 on April 30, the rally would go no further. Those who bought the bounce at 0.001492 began to take profits. The selling took out support of 0.002, which forced those who bought around 0.0025 to cut their losses. The pair has been dropping since, but recently bulls have been making their presence felt.
Technical analysis show that QTUM/BTC is carving a bottom at 0.0013 support. This view comes after the pair dropped to as low as 0.001264 on June 25 but bulls flexed their muscles and pushed the price above 0.0013. Even though there was considerable selling between June 26 – 28, bulls managed to defend the support. This tells us that 0.0013 is an area where demand exceeds supply.
In addition, technical indicators are flashing multiple bullish signals. The MACD reveals a long bullish divergence and a possible bullish cross. Plus, the daily RSI has bounced from support of 18.
The strategy is to buy as close to 0.0013 support as possible. If bulls continue to build a base at this level, it won’t be long until they ignite a rally to our initial target at 0.002. The process may take less than a month.
Daily Chart of Qtum/Bitcoin on Binance
As of this writing, the Qtum/Bitcoin pair is trading at 0.001405 on Binance.
Summary of Strategy
Buy: As close to 0.0013 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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