Trade Recommendation: WaBi
The WaBi/Bitcoin pair (WABI/BTC) took out resistance of 0.000037 on October 13, 2018. This triggered the cup and handle reversal structure on the 4-hour chart. The breakout looked super convincing. The pair printed volume that’s almost 770% of its daily average on the day of the breakout. This was a clear signal to the market that WaBi is back.
The bullish price action attracted those who were watching in the sidelines. Consequently, WABI/BTC climbed to as high as 0.00005769 on October 14. At that price level, those who bought the bottom and the breakout began to take profits. The market pulled back as a result. However, this gives you an opportunity to buy the dip.
Technical analysis shows that WABI/BTC is in the process of flipping resistance of 0.000037 into support. This is a key process for the market. The cryptocurrency must establish a new base to be able to sustain the next move up.
In addition, we have the 100-day and 200-day moving averages acting as immediate support areas. We can rely on these levels to help guide our trading decisions.
The strategy is to buy on dips as close to 0.000037 as possible. We believe that the market is due for one more pullback before shooting up. You can use the opportunity to accumulate positions near the breakout.
If the market moves as expected, it will likely rally to our initial target of 0.000052 and then 0.000065. The process may take more than a month.
4-Hour Chart of WaBi/Bitcoin on Binance
As of this writing, the WaBi/Bitcoin pair is trading at 0.00003856 on Binance.
Summary of Strategy
Buy: As close to 0.000037 as possible.
Target: 0.000052 first and then 0.000065.
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.
Featured image courtesy of Shutterstock.