Trade Recommendation: Red Pulse Phoenix
We’ve been keeping tabs on Red Pulse Phoenix (PHX/BTC) after its meteoric ascent from 0.00000217 on October 26, 2018 to 0.00001 on October 27. That’s an increase of over 360% in 24 hours!
Of course, such a big leap in price in such a short period of time is never sustainable. At that point, Red Pulse Phoenix flashed extreme overbought signals on the 4-hour RSI. On top of that, the 4H candle generated a long wick above its body. This indicated that the market was screaming for a pullback. So that’s what happened.
Red Pulse Phoenix entered a month-long correction that saw the market plummet to as low as 0.00000228 on November 25. At that price, PHX/BTC appeared ready to reverse. We just needed to confirm our bias. We believe that this is something that we’ll likely see in the next few days.
Technical analysis shows that PHX/BTC has managed to recover key monthly support of 0.0000025. The recovery spurred demand, which enabled the market to rally to 0.00000342 on November 28. While the two-day rally looked bullish, there’s also the possibility that it is just a dead-cat bounce.
Thus, the best thing to do right now is to stay patient and watch the price action.
Red Pulse Phoenix breached the range midpoint of 0.000003 on November 28. With this price movement, we can expect the market to drop back down to monthly support of 0.0000025. If it holds, then PHX/BTC would have successfully retested the support. More importantly, it would create a double bottom pattern. This would give us a slightly bullish bias.
The strategy is to buy the dip as close to 0.0000025 monthly support as possible. If bulls can stay above the support, they will likely inspire a rally to the range midpoint and our target of 0.000003. Take that out and the next target is the top end at 0.0000034.
The process may take less than a month.
4-hour Chart of Red Pulse Phoenex/Bitcoin on Binance
As of this writing, the Red Pulse Phoenix/Bitcoin pair is trading at 0.00000273 on Binance.
Summary of Strategy
Buy: As close to 0.0000025 as possible.
Target: 0.000003 first and then 0.0000034.
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.