Trade Recommendation: ZRX
The 0x/Bitcoin pair (also known as ZRX/Bitcoin) is in the midst of a strong bull run that started on January 8, 2018 when the market surged above 0.0001. It went as high as 0.00017 on January 13 before it succumbed to profit taking. As selling commenced, the market retreated to 0.00010570 on January 16 which was its new higher low back then. It then resumed the ascent and reached as high as 0.00019234 on January 27. Sellers exploited the opportunity and dumped their shares which forced the market to pullback.
Pullbacks in a bull run, however, are very healthy. New buyers absorb the selling pressure and keep the market steadily rising by holding on to their positions. On January 30, the market created another bullish higher low of 0.00015020.
Technical analysis reveal that the market is creating a bullish continuation pattern. Participants only need to wait for the consolidation period to pass, and the market will once again resume its climb. That’s usually the case when the market is still in the early stages of its uptrend.
The strategy is to buy as close to 0.00016 support as possible. Once selling is over, the market will likely march to our target of 0.00022. The entire process can take about a month.
Daily Chart of 0x/Bitcoin on Poloniex
As of this writing, the 0x/Bitcoin pair is trading at 0.00017320 on Poloniex.
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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