Trade Recommendation: SNGLS/Bitcoin

While the SNGLS/Bitcoin pair is a relatively new market, it established its bearish trend when it failed to close above 0.00003 on November 7, 2017. From that point on, the market gradually tumbled until it bottomed out on December 8 at 0.00000613. A week later, the pair established support at 0.0000068, which it used as a springboard for a huge rally.

On January 14, 2018, the market went as high as 0.00003859. With the market growing by a staggering 529.53% from the bottom, participants exploited the opportunity to take profits. The SNGLS/Bitcoin pair again went below 0.00003 on January 15 as sellers dumped positions. Currently, the market is still consolidating from its rapid rise. This is your chance to place buy orders.

Technical analysis show that the market is locked in a wide range between 0.000016 and 0.00003. While consolidating at this range, it is also creating a bullish higher low set up at 0.000016. Volume for the last four trading days has been anemic. Plus, the daily price range is starting to narrow. These indicators suggest that consolidation might be over soon.

The strategy is to deploy the classic strategy – buy at the support and sell at the resistance. In particular, buy as close to 0.000016 support as possible and sell at 0.00003 resistance. The market has a history of being volatile so the climb back to 0.00003 might happen in a month.

Daily Chart of SNGLS/Bitcoin on Binance

As of this writing, the SNGLS/Bitcoin pair is trading at 0.00001751 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, 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.