Trade Recommendation: Quantstamp
Quantstamp (QSP/BTC) is one of several altcoins that recently printed a fresh yearly low. It dropped to as low as 0.00000367 on December 15, 2018. At that price, the market was down by over 93% from this year’s peak of 0.0000542. The good news is that QSP/BTC appears ripe for a significant rally. This is where we come in to bottom pick the market.
Technical analysis shows that QSP/BTC appears to have established a short-term bottom. We have several reasons to support this view.
First, QSP/BTC is creating a bottom structure that we’ve also seen in markets that have recently pumped, including SingularityNET (AGI/BTC), Zilliqa (ZIL/BTC), and Stratis (STRAT/BTC). This involves touching the support several times with one instance of a temporary breach. We noticed that the pump often comes on the retest of the support after the breach.
A look at the 12-hour chart shows that QSP/BTC took out support of 0.00000389 on December 14 but managed to reclaim it on December 17. The market is currently retesting the support. If it holds, QSP/BTC is likely to rally.
In addition, technical indicators support our bullish view. The 12-hour RSI is showing a bullish divergence. Also, we spotted a golden cross between the 50 MA and the 100 MA on the 4-hour chart. These signals tell us that the market is turning bullish.
The strategy is to buy as close to 0.00000389 support as possible. As long as the market stays above this level, QSP/BTC will likely generate the momentum to climb to our initial target of 0.0000046. Take that out and 0.0000053 is next.
The process may take less than a month.
12-hour Chart of Quantstamp/Bitcoin on Binance
As of this writing, the Quantstamp/Bitcoin pair is trading at 0.00000389 on Binance.
Summary of Strategy
Buy: Current price of 0.00000389.
Targets: 0.0000046 and 0.0000053.
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.