Trade Recommendation: Quantstamp
The Quantstamp/Bitcoin pair ignited its bull run on December 30, 2017 after breaching resistance of 0.00002. The market’s momentum was so strong that it went as high as 0.00005420 on January 8, 2018. The market grew by 171% in less than two weeks. This sudden spurt was exploited by breakout players as they started to take profits.
As selling commenced, the market retreated to as low as 0.00002223 on January 16, but closed at 0.00003646 on the same day. The price action created a long wick under the daily candle’s body indicating a bounce. Two days later, the market went as high as 0.00004990. The rapid ascent was taken advantage by bottom pickers which forced the pair to tumble to 0.00002414 on February 2. With a higher low in place, the market bounced.
Technical analysis show that the Quantstamp/Bitcoin pair has broken out of a bullish continuation pattern when it breached trendline resistance of 0.000030 on February 6 with heavy volume. On the next day, it went as high as 0.00004198 before succumbing to another round of profit taking. Given this dip, it gives you the chance to buy at a price that is close to a firm support level.
The strategy is to buy as close to 0.0000345 support as possible. The target of this breakout is at 0.000060. The entire process can take a month.
Daily Chart of Quantstamp/Bitcoin on Binance
As of this writing, the Quantstamp/Bitcoin pair is trading at 0.00003498 on Binance.
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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