Trade Recommendation: QuarkChain
QuarkChain (QKC/BTC) came off lows of 0.00000303 on August 14, 2018. At that price, QuarkChain lost close to 95% of its value from the 2018 high of 0.00005832. It looked like the market had more room to fall but signs of bearish exhaustion were showing. First, the daily RSI was in extreme oversold territory. In addition, volume began to significantly decline on August 12. This was an indication of fading selling activity.
Under these conditions, the market rallied. It climbed as high as 0.00001428 on November 27. If you missed this rally, there’s no reason to buy the dip just yet. Might be best to buy QuarkChain at lower levels.
Technical analysis shows that QKC/BTC breached immediate support of 0.00001080. The breach was immediately followed by a retest, which is a bearish signal. With this price action, we can expect QuarkChain to continue its pullback.
In addition, we can see a large bearish divergence on the daily chart. This development affirms our position that the market is bearish in the short-term. Nevertheless, we can use these findings to wait for the market to retrace to our desired level and play the bounce.
After the breach of 0.00001080, the next reliable support is 0.00000726. This support will likely hold as it is a key monthly level. On top of that, technical indicators are likely to cool off by the time price hits this level. Lastly, we can also rely on the diagonal support to keep the uptrend alive.
The strategy is to buy as close to 0.00000726 as possible. If the market holds this level, we can assume that the uptrend is healthy. If that’s the case, the immediate target is 0.00001445.
The process may take a month.
Daily Chart of QuarkChain/Bitcoin on Binance
As of this writing, the QuarkChain/Bitcoin pair is trading at 0.00001047 on Binance.
Summary of Strategy
Buy: As close to 0.00000726 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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