Trade Recommendation: Zcash
The Zcash/Bitcoin pair (ZEC/BTC) ignited its bull run when it took out 0.04 resistance on January 7, 2018. This triggered the bullish inverse head and shoulders pattern on the daily chart. The force of the breakout pushed the market to as high as 0.0588 on February 10. At this price point, the market has achieved the target of the inverse head and shoulders pattern.
Savvy traders equipped with this knowledge started dumping positions to lock gains. As a result, the market tumbled. It broke below 0.04 support on February 20. Bulls tried to keep that territory but selling pressure was so strong that the pair continued to plunge. While the ZEC/BTC has fallen, this could be your chance to pick the bottom.
Technical analysis reveal that Zcash/Bitcoin is about to hit firm support of 0.03. When it does, the market would most likely be in oversold territory. It should provide selling relief that can start a rally.
The strategy is to buy as close to 0.003 support as possible. If the market respects this level, ZEC/BTC will likely use it as a base to climb to our target of 0.05. The process may take more than a month.
Daily Chart of Zcash/Bitcoin on Poloniex
As of this writing, the Zcash/Bitcoin pair is trading at 0.03125402 on Poloniex.
Summary of Strategy
Buy: As close to 0.03 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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