Trade Recommendation: Waltonchain

The Waltonchain/Bitcoin pair (WTC/BTC) took out resistance of 0.00044 on August 23, 2018. The breach triggered the breakout from the large falling wedge on the weekly chart. This enabled the market to rally to as high as 0.0007997 on August 31. In a little over a week, the market grew by over 80%.

The rally, however, was taken as an opportunity by breakout buyers and bottom fishers to dump positions. As heavy selling commenced, WTC/BTC pulled back. Nevertheless, this dip is your chance to buy the breakout.

Technical analysis shows that WTC/BTC is respecting support of 0.00044. This view comes after the pair dropped to as low as 0.0004344 on September 12. At that point, bulls started to enter the buying picture. The increase in demand lifted the market back above the support.

This is an encouraging sign. Pullbacks are often expected to happen after a breakout rally. The fact that WTC/BTC is respecting the new support means that participants are bullish. They are no longer waiting for the pair to revisit recent lows before placing buy orders.

The strategy is to buy as close to 0.00044 support as possible. As long as the market is above this level, there’s a very good chance that it will revisit our target of 0.00079.

The process may take a month.

Weekly Chart of Waltonchain/Bitcoin on Binance

As of this writing, the Waltonchain/Bitcoin pair is trading at 0.000487 on Binance.

Summary of Strategy

Buy: As close to 0.00044 support as possible.

Target: 0.00079

Stop: 0.00043

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.