Trade Recommendation: Qtum

The Qtum/Bitcoin (QTUM/BTC) pair is down over 82% year-to-date. The market has been in a long and painful downtrend since early this year. Just looking at the chart can make you feel depressed even if you’ve never invested in the pair. The sharp drops throughout this bear market received little to no resistance from bulls. It’s as if bulls have given up hope.

At this point, however, it pays to be a contrarian. Hopelessness and depression are signs of a bottom. The “smart money” usually comes in when the public has abandoned the market. We’re starting to see this in QTUM/BTC.

Technical analysis show that the pair is hovering just above its historic support of 0.0006. This is the market’s line in sand. Bulls must defend it if they have any hope of keeping the market stable. It looks like they got the memo.

On August 14, 2018, volume suddenly spiked as QTUM/BTC dropped to 0.00061. Volume remained elevated until August 17 when the market printed volume that’s never been seen since April 2018. Someone is buying the support and that someone is buying in bulk. To this someone, the market does not look hopeless or depressing.

The strategy is to buy as close to 0.0006 support as possible. If the backtesting of the historic support is a success, QTUM/BTC might be able to generate the momentum needed to break out of the large falling wedge and rally to our target of 0.001.

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 0.000662 on Binance.

Summary of Strategy

Buy: As close to 0.0006 as possible.

Target: 0.001

Stop:  0.00059

 

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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.