Trade Recommendation: Stratis/Bitcoin

After generating an all-time high of 0.00468588 on June 3 at Poloniex, Stratis succumbed to intense selling pressure and closed at 0.00363200 on the same day. The price action on June 3 created a large hanging man candle, suggesting that the market is toppish. The assumption was validated when Startis broke critical support at 0.003 on June 10. The market has been in a downtrend since, as it took out support levels at 0.002 and 0.00115.

Stratis finally settled November 2 when it touched support level at 0.0004. The market consolidated at this level for about a month until it breached initial resistance at 0.00065 on December 18. The market has been rallying since and has even attempted to take back 0.00115. However, bears repelled the advance and maintained control of that level. That might not be the case for long.

Technical analysis show a bullish reversal pattern that seems primed for a breakout for two reasons. First, while the market failed in its initial attempt to breach 0.00115 resistance, it did create a new higher low at 0.00088. Second, RSI has managed to turn resistance at 60 into its new support. These indicators suggest that breakout is on the horizon.

The strategy is to buy breakout at 0.00115 with volume of 950 Bitcoin on Poloniex. Breach of this level can take the market to the next resistance of 0.002.

Daily Chart of Startis/Bitcoin on Poloniex

As of this writing, the Stratis/Bitcoin pair is trading at 0.00104199 on Poloniex.

 

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.