Trade Recommendation: Simple Token

The Simple Token/Bitcoin (OST/BTC) market exhausted its bullishness on January 11, 2018 when it failed to close above 0.00009 resistance. While the pair attempted to breach that resistance level on January 12 and 13, bears kept them at bay. Finally on January 14, the market broke below 0.000064 support, and that sealed the downtrend.

Although the OST/BTC pair bounced and went as high as 0.0000695 on January 20, bears have extended their territory to 0.000064. As the rally was met with selling pressure, it gradually declined until it went as low as 0.00002692 on February 6. This dip is your opportunity to enter near a firm support level.  

Technical analysis show that the Simple Token/Bitcoin pair is respecting critical support at 0.000027. When the market touched this level on February 6, bulls came to defend it, and sent it as high as 0.00004990 with heavy volume. The market has retreated since, but volume has been thin for the last six trading days. This indicates that sellers are losing interest to dump positions at this level.

The strategy is to buy as close to 0.000025 as possible. Once bulls successfully retests this support level, the market will likely hit our target of 0.000064. The process may take about a month.

Daily Chart of Simple Token/Bitcoin on Binance

As of this writing, the Simple Token/Bitcoin pair is trading at 0.00002707 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.

Featured image courtesy of Shutterstock.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.