Trade Recommendation: SALT
The SALT/Bitcoin pair (SALT/BTC) started its bull run on December 21, 2017 when it went above resistance of 0.0006. The bullish price action gave the pair the boost to go as high as 0.001232 on December 29. In a little over a week, SALT/BTC climbed by over 105%. The rapid growth inspired those who bought the breakout to take profits.
Faced with heavy selling pressure, the pair tumbled to 0.000606 on January 5, 2018. Sensing that a higher low as in place, bottom pickers bought the dip and pushed the price up to 0.001244 on January 8. On the same day, however, the market closed at 0.000955, creating a long wick above the daily candle’s body. This indicated that selling pressure was still heavy and bulls can no longer sustain the ascent. As a result, the market went into a freefall as it broke below one support after another.
Technical analysis show that the break of SALT/Bitcoin below 0.00032 support on March 17 may have been a false breakdown. Bulls have managed to take back the support yesterday, March 21, with extremely high volume of 1.704 million units of SALT when the daily average is about 500,000. The price action suggests that bulls are ready to hold their ground. Also, it is important to note that the market has always respected this support level in its brief history.
The strategy is to buy the current price level. If SALT/BTC preserves the 0.00032 support, it will likely create a base before it can ascend to our target of 0.0006. The process may take a month.
Daily Chart of SALT/Bitcoin on Binance
As of this writing, the SALT/Bitcoin pair is trading at 0.000318 on Binance.
Summary of Strategy
Buy: Current price level of 0.000318.
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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