Trade Recommendation: Zcash
Zcash (ZEC/BTC) printed its yearly low of 0.012775 on September 14, 2018. At that price level, the market was down by over 78% from the 2018 peak of 0.058957. The breach of the key weekly support of 0.0165 would have most likely shaken out and whipsawed a lot of retail traders. That’s because, by the end of September 14, Zcash closed at 0.01826.
It was worth mentioning this move because it was nothing more than a deviation. It was a low volume shakeout that was quickly bought out by bulls. In reality, Zcash has been in a clear accumulation period since late August.
Technical analysis shows that ZEC/BTC is range trading between 0.0165 and 0.02171. The market has been swinging back and forth these levels for the last three months. This is good news for long-term investors and position traders who wish to buy at a price level where the risk to reward ratio is highly favorable.
If you look at the daily chart, you will see that 0.0165 is the market’s parabolic support. The swing to this low level sparked the parabolic run that catapulted Zcash to the yearly high of 0.058957. Thus, building a base at these levels makes sense. This is a key demand area where buyers do not back down even when selling pressure is high.
The strategy is to buy on dips as close to 0.0165 as possible. Watch out for stop hunts and shakeouts. It might be best to wait for the price to settle before entering positions.
If bulls continue to defend 0.0165, then the target is the top end of the range at 0.02171. The process may take a month.
Daily Chart of Zcash/Bitcoin on Binance
As of this writing, the Zcash/Bitcoin pair is trading at 0.01923 on Binance.
Summary of Strategy
Buy: As close to 0.0165 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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