Trade Recommendation: VeChain
The VeChain/Bitcoin (VEN/BTC) pair became bullish on December 27, 2017 when it took our resistance of 0.0001. The breakout attracted so much momentum that the pair became parabolic on the daily chart. With its supercharged velocity, VEN/BTC went as high as 0.00081678 on January 22, 2018. In less than a month, the pair rose by over 716%!
At this price point, the pair was in extreme overbought territory. Those who bought the breakout used this is a signal to take profits. The heavy selling drove the pair down to 0.00042867 on February 6. Bottom pickers bought the dip after they noticed that the market respected the 61.8% Fibonacci level. However, they could only inspire a rally good to 0.0006199 on February 25.
Sensing that a lower high was in place, participants began to dump positions. As a result, VEN/BTC dropped to 0.00031748 on March 30. The good news is the pair has been rallying since. Actually, it looks primed to ignite another bull run.
Technical analysis show that VeChain/Bitcoin is positioning to take out resistance of 0.0006. This would trigger the large inverse head and shoulders reversal pattern on the daily chart.
To complete the breakout, the pair needs to generate volume of at least 5 million VeChain units on the daily chart. Bottom fishers are likely to take profits at the resistance. The market needs buyers to absorb the selling pressure.
The strategy is to buy the breakout at 0.0006 as long as the pair prints the required volume. If bulls take out the resistance, they will spark a wave up that will likely carry the pair to our target of 0.00085.
The process may take a month.
Daily Chart of VeChain/Bitcoin on Binance
As of this writing, the VeChain/Bitcoin pair is trading at 0.00053243 on Binance.
Summary of Strategy
Buy: Breakout of 0.0006 after the market generates 5 million volume of VeChain units.
Stop: 0.00057 after the breakout.
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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