Trade Recommendation: Zcash
Zcash (ZEC/BTC) is in a great position to finally put an end to its bear market.
On March 8, 2019, the market dropped to its yearly low of 0.01252. At that point, Zcash lost over 78% from the 2018 bull market high of 0.058957, which was reached in February 2018. With such a huge drop, it wouldn’t surprise us if the market bottomed out at that level. A look at the daily chart tells us that we’re a few days away from confirming the bottom.
Technical analysis shows that ZEC/BTC is very likely to bottom out at 0.0128. We have this view because Zcash has defended this level multiple times already.
On September 14, 2018, the market wicked down to 0.0128 support. The wick below the daily candle’s body was so long that it would have been very easy to assume that Zcash flash crashed on that day. Nevertheless, participants rejected lower prices. This tells us that bulls are prepared to absorb selling pressure around 0.0128.
Since then, the support has been tapped twice already. Therefore, an argument can be made that the support may be ready to crumble. However, you must also consider that crypto in general is looking really bullish and a rising tide lifts all boats. With strong bullish sentiment in most altcoins, it is likely that Zcash will bottom out at 0.0128 and form a double bottom pattern before rallying hard.
The strategy is to buy on dips as close to 0.0128 as possible. As long as the market is above this level, our targets are 0.01415 and 0.0155.
The process may take less than a month.
Daily Chart of Zcash/Bitcoin on Binance
As of this writing, the Zcash/Bitcoin pair is trading at 0.013013 on Binance.
Summary of Strategy
Buy: As close to 0.0128 as possible.
Targets: 0.01415 and 0.0155.
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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