Trade Recommendation: TRON
The TRON/Bitcoin pair (TRX/BTC) showed bullish signs on January 2, 2018 when it breached 0.000004 resistance. The breakout was so strong that it skyrocketed to 0.00002047 on January 5. In three days, the pair rose by over 411%. Momentum players were happy to exploit the pair’s astronomical ascent as they dumped positions.
Faced with heavy selling pressure, TRX/BTC dropped to 0.00000382 on January 16. While the market did rally, it generated a lower high of 0.00000945 on January 18. From that point, the pair had been posting a series of lower highs while respecting 0.000004 support until recent events.
Technical analysis show that TRON/Bitcoin have broken below 0.000004 on March 7. It went as low as 0.00000315 on March 18 before bulls stepped in to push the price up. Yesterday, March 20, the pair reclaimed 0.000004 support with heavy volume. The move below 0.000004 appears to be a bear trap. Usually when this happens, the pair finds the momentum to climb to the top end of the range.
The strategy is to buy as close to 0.000004 as possible. If bulls preserve the support, the market will likely consolidate at this price before it can move to our target of 0.000008. The process may take a month.
Daily Chart of TRON/Bitcoin on Binance
As of this writing, the TRON/Bitcoin pair is trading at 0.00000435 on Binance.
Summary of Strategy
Buy: As close to 0.000004 as possible.
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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