Trade Recommendation: WaBi
The WaBi/Bitcoin pair (WABI/BTC) started its uptrend on December 31, 2017 when it took out resistance of 0.00016. This triggered the small cup and handle reversal pattern on the daily chart. The breakout attracted so much momentum that it went parabolic and skyrocketed to 0.00040733 on January 10, 2018. In less than two weeks, WABI/BTC rose by almost 155%.
At this price level, the market flashed bearish signals. First, it was in extreme overbought territory. In addition, the daily candle on January 10 was a shooting star indicating the presence of sellers above 0.00034. Those who bought the breakout saw this as an opportunity to take profits.
As the market succumbed to selling pressure, it plummeted to 0.0001822 on January 16. While bottom fishers bought the dip, the rally they sparked was only good for a lower high of 0.0003248 on January 20. With a lower high in place, WABI/BTC nosedived until it found the bottom at 0.00007511 on March 18.
The pair has been consolidating since. This could be your opportunity to buy the market near its bottom.
Technical analysis reveals that WaBi/Bitcoin is in sideways consolidation. It is trading in a wide range between 0.00008 and 0.00016. We hold this view because any chance of a bullish higher low setup was erased on May 22 when the pair broke 0.0001 support. Below 0.0001, the next firm support is 0.00008.
The strategy is to bottom fish the market and buy as close to 0.00008 as possible. If bulls preserve this support, they will inspire a rally back to resistance of 0.00016.
The process may take a month.
Daily Chart of WaBi/Bitcoin on Binance
As of this writing, the WaBi/Bitcoin pair is trading at 0.000099 on Binance.
Summary of Strategy
Buy: As close to 0.00008 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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