Trade Recommendation: Qtum
Qtum (QTUM/BTC) is a market that wants to finally get out of bear territory. It took out diagonal resistance of 0.00057 on March 14, 2019. This triggered the breakout from a large symmetrical triangle on the daily chart.
Also, the breakout was a show of bullish force. On that day, Qtum’s volume was 12.221 million, which is the highest daily volume in the market’s history on Binance. If you scroll to the beginning of Qtum’s trading history on Binance, you will see that the second highest volume is 4.431 million, which was posted on March 26, 2018. Thus, the dramatic volume uptick shows that bulls are determined to take control of the market.
Technical analysis shows that QTUM/BTC is creating a bull pennant on the daily chart. The apex of the pennant appears to be at immediate support of 0.000585. We want Qtum to correct all the way down to this level. This will give technical indicators time to cool off.
To be honest, however, we might not get this chance because Qtum is showing more bullish signals. We just spotted a golden cross as the 100-day moving average (MA) crossed above the 200-day MA. On top of that, volume has become anemic, which means that not a lot of people are taking profits. Once bears stop dumping, Qtum will likely resume its ascent.
The strategy is to buy on dips as close to 0.000585 as possible. As long as Qtum remains above this level, it will likely attract the momentum to climb to our target of 0.00085. We’ll revisit this coin once the target is hit.
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 0.00063 on Binance.
Summary of Strategy
Buy: As close to 0.000585 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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