Trade Recommendation: Viberate
The Viberate/Bitcoin (VIB/BTC) pair showed further signs of bearishness on February 20, 2018 when it broke below support of 0.000025. The new resistance was then tested on March 1 when the pair rallied to 0.0000307 only to close at 0.00002427. The confirmation of the resistance triggered a waterfall event that saw the pair drop to 0.0000145 on March 18. In about a month, the pair lost 42% of its value.
At this price level, the pair flashed reversal signals. First, it was in extreme oversold territory. Second, the daily candle was a hammer. This was a signal that bulls were starting to enter the buying scene. In addition, the 4-day, 8-day, and 21-day moving averages were all detached from the daily candle. This was an indication that the drop was unsustainable.
With a bottom in place, the pair began to rally. It went as high as 0.000029 on May 15 before succumbing to profit taking. VIB/BTC has been correcting since. This can be your chance to buy the bottom.
Technical analysis reveal that VIB/BTC is preserving support of 0.000014. While the market fell to 0.00001373 on June 13, bulls scooped up the market and lifted it back to above 0.000014. Moreover, we are starting to see reversal signals.
The pair is in extreme oversold territory. In addition, the market respects the 26.8 RSI support. Also, all the moving averages are detached from the daily candle. Lastly, the volume has been really thin. This tells us that bears are losing interest to sell at this level.
The strategy is to buy as close to 0.000014 support as possible. If bulls defend the support again, they may spark a rally to resistance of 0.000025. We’ll revisit the trade once the target is hit for the possibility of a breakout.
The entire process might take less than a month.
Daily Chart of Viberate/Bitcoin on Binance
As of this writing, the Viberate/Bitcoin pair is trading at 0.00001447 on Binance.
Summary of Strategy
Buy: As close to 0.000014 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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