Trade Recommendation: Salt
Salt (SALT/BTC) printed a fresh yearly low of 0.000051 on November 26, 2018. At that price, the market was down by more than 95% from the 2018 peak of 0.001244. If you’re a bottom picker, finding assets that have been brutally battered should excite you. However, not all altcoins that have lost over 90% of their value will recover. Some will likely cease to exist.
Nevertheless, there are gems worth buying even under extreme bearish conditions. They may not be able to immediately reverse their trend, but they can provide opportunities to grow your BTC balance. We believe Salt is one of those gems.
Technical analysis shows that SALT/BTC is working hard to establish a short-term bottom at 0.0000552. This area is a strong weekly support. In July 2018, Salt dropped to this area but lower prices were quickly rejected. Markets tend to remember this type of price action. The swift rejection in July showed that bulls are ready to defend 0.0000552.
So far, this assumption is proven to be correct. Even though Salt dropped to 0.000051, bulls quickly recovered the support and closed the week of November 25 above 0.0000552. The market has stayed above that level since. This tells us that participants are likely accumulating at the range low. If this is true, this altcoin will eventually generate the momentum to rally to our range high.
The strategy is to buy as close to 0.000055 as possible. If bulls continue to defend the support, this crypto will likely have the legs to bounce to our initial target, which is the range midpoint of 0.000083. Take that out and the next target is 0.00011.
The process may take more than a month.
12-Hour Chart of Salt/Bitcoin on Binance
As of this writing, the Salt/Bitcoin pair is trading at 0.0000582 on Binance.
Summary of Strategy
Buy: As close to 0.000055 as possible.
Targets: 0.000083 and 0.00011.
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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