Trade Recommendation: Viberate
Viberate/Bitcoin (VIB/BTC) took out resistance of 700 satoshis on October 23, 2018. This triggered the breakout from the cup and handle pattern on the 4-hour chart. The breakout appears valid as well. When the market broke out, VIB/BTC generated volume that’s more than 130% of its daily average.
The bullish price action attracted breakout traders. This ignited a rally to 1,290 satoshis on October 31. At that price, the market was ripe for profit-taking. The 4H RSI was in extremely overbought territory. In addition, VIB/BTC created a long wick above the 4H candle’s body. These were indications that bottom pickers and breakout traders were locking gains.
The good news is that the market is dropping to our buy zone. This is a good chance for us to buy the dip.
Technical analysis shows that VIB/BTC is retesting support of 700 satoshis. This step is important because it helps the market create a new base of buyers. These buyers will help keep the market’s uptrend sustainable.
Also, we’re confident that support of 700 satoshis will hold. First, we can see the 21-day, 100-day, and 200-day moving averages crawling at these levels while under the candle’s body. These MAs will act as immediate, yet strong, support areas to help keep VIB/BTC above 700 satoshis.
On top of that, the 4H RSI has cooled off. It is far from overbought territory. This gives the market a lot of room to stage the next rally.
The strategy is to buy the dip as close to 700 satoshis as possible. As long as bulls defend this support, they are likely to launch a rally to our targets of 1,200 satoshis and then 1,400 satoshis.
The process may take more than a month.
4-Hour Chart of Viberate/Bitcoin on Binance
As of this writing, the Viberate/Bitcoin pair is trading at 784 satoshis on Binance.
Summary of Strategy
Buy: As close to 700 satoshis as possible.
Target: 1,200 first and then 1,400 satoshis.
Stop: 675 satoshis.
NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.
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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