Trade Recommendation: VCash/Bitcoin
The Vcash/Bitcoin pair (XVC/BTC) pair launched its bull run on December 25, 2017 when it took out resistance of 0.00006. The price action triggered the rounding bottom reversal pattern on the daily chart which catapulted the pair to as high as 0.00008801 on January 15, 2018. In the less than one month, XVC/BTC grew by over 46%.
As the market achieved the target of the reversal pattern, breakout players started to dump positions. The pair dropped to 0.00005443 on January 17. While bottom pickers bought the dip, they could only inspire a dead cat bounce to 0.00006822 on January 18. The lower high was a signal that bulls are no longer in control.
Market participants responded by locking gains or cutting losses to preserve their capital. XVC/BTC then posted a series of lower highs and lower lows until recent price action.
Technical analysis show that Vcash/Bitcoin has broken below 0.000035 support on April 5. However, bulls stepped in and lifted the pair to as high as 0.00004035, today April 23. This indicates that the break below 0.000035 was a false breakdown. The bear trap could ignite a rally that can push the market to our target.
The strategy is to buy as close to 0.000038. As long as 0.000035 support holds, the market may have enough momentum to climb to our target of 0.00006.
The process may take a month.
Daily Chart of XVC/BTC on Poloniex
As of this writing, the Vcash/Bitcoin pair is trading at 0.00003896 on Poloniex.
Summary of Strategy
Buy: As close to 0.000038 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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