Connect with us

Altcoins

Trade Recommendation: EOSBTC

Published

on

CIf we can identify a cryptocurrency that is likely to change its trend from down to up, we can benefit a lot. Such a trade helps us to enter into the position at the beginning of the trend, which can be held on as the uptrend asserts itself. We believe that EOSBTC has changed its trend from down to up and is setting up for a move to the upside.

// -- Discuss and ask questions in our community on Workplace.

Key points

  1. EOSBTC is emerging from a downtrend after forming a rounding bottom
  2. Scale into the position to improve the risk to reward ratio

Daily chart

EOSBTC topped out on July 03 at $0.00235. The subsequent downtrend plunged the cryptocurrency to a low of $0.00008150 by October 23. That is a 96.5% correction within a three and half month period. However, we believe that the digital currency has formed a bottom and is likely on its way up. Let’s see the setup.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

EOSBTC has formed a rounding bottom formation in the past month. It broke out of the pattern on November 14. Since then, it has successfully retested the breakout level of $0.00020130. However, it is facing considerable resistance at the $0.00026 levels and is currently close to a critical level, which has a confluence of supports.

The virtual currency is rising in an ascending channel and the trendline support of the channel is close to $0.0002013 levels. At the same level, we have two other supports, the 20-day EMA and the horizontal support.

As three important supports are at the same level, we expect this level to hold.

However, as EOSBTC is still stuck inside a range, we shall scale into the position rather than buy all of it at once.

We suggest buying the first lot (about 40% of your usual allocation) at the current levels of $0.00022845. Though the risk is high, the stop loss is nearby, hence, we end up risking a small amount for larger gains.

We want to add another 30% of the position at $0.000246 when the cryptocurrency bounces from the supports. The final 30% should be purchased on a breakout and close above the overhead resistance of $0.00026 levels. This breakout will confirm the start of a new uptrend. Where is our stop loss and what is our profit objective?

Our stop loss will be placed just below the critical supports, at $0.000195 and our profit objective is $0.0003200.

Featured image courtesy of Shutterstock. 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

2 Comments

2 Comments

  1. nomiaqil

    November 25, 2017 at 4:08 am

    Hi,

    If I want to hold for long term, should I just buy at these levels and leave for long term?

  2. Rakesh Upadhyay

    November 25, 2017 at 4:37 am

    Hello nomiaqil,

    Well, buying for the long-term is a tricky proposition, especially because some cryptocurrencies have lost huge value if purchased at the wrong time. Once the currency starts falling, it is difficult to call where the decline will end.

    The most I would wait is $0.00018 on EOSBTC. Once price breaks below this level, I expect it to fall to $0.00012 and thereafter to the lows. You will lose huge money on your investment, hence, please don’t block your money in a falling currency. Just take the SL hit and move on. We will get many opportunities in other currencies to make money.

    Please let me know if you have any query.

    With warm regards
    Rakesh Upadhyay

You must be logged in to post a comment Login

Leave a Reply

Altcoins

Trade Recommendation: XMR/BTC Pair Throwback

Published

on

The XMR/BTC market (Monero) has been in downtrend on the hourly chart after posting a high of 0.0225 on December 6 and failing to hold critical support at 0.02. It went to as low as 0.0145 on December 8 before respecting RSI at 32 where it established support. The market used the new support level to rally and generate one higher low after the other. It recently attempted to reclaim support at 0.02 but was repelled by bears. Currently, the market is trading around 0.019 levels where it appears to have created another higher low.

// -- Discuss and ask questions in our community on Workplace.

Technical analysis shows a large reversal pattern in the hourly chart that can take the XMR/BTC pair to 0.025. Even though the market failed to breach resistance at 0.02, investors should not see it as a failed breakout. What we’re seeing is a throwback which is a temporary retreat in price. Throwbacks are common in breakout plays and are often seen as a bullish signal. The next time the market attempts to breach 0.02 resistance, it has a much better chance of breaking it with conviction.

The strategy is to buy breakout at 0.02 with immediate stop at 0.0189.

Hourly XMR/BTC Chart on Poloniex

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

As of this writing, XMR/BTC is trading at 0.018714 on Poloniex.

Summary of Strategy

Buy: breakout at 0.02

Target: 0.025

Stop: move below 0.0189 after buying breakout at 0.02.

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.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Altcoins

Trade Recommendation: FCT/BTC Bullish Reversal

Published

on

The market reach its all-time high back in June this year when FTC/BTC (Factom) reached 0.01463162. Unfortunately, the pair wasn’t able to sustain its momentum. It created a lower high several days later at 0.01066744 which signalled investors to take profits or cut their losses. As a result, the market tumbled and lost 93.17% in value from its all-time high. Such a tremendous loss would have created an atmosphere of despair in the market. Usually, that’s when the savviest traders come in.

// -- Discuss and ask questions in our community on Workplace.

Technical analysis reveals that the worst is behind the pair. FCT/BTC touched support at 0.001 on the daily chart twice and respected it on both occasions. This is a good indication that the market has found a reliable support level. In addition, hourly chart shows that a large reversal pattern is underway. The pair may have retreated when it nearly touched 0.002, but it generated a new higher low in the process at 0.00156566. The throwback is a bullish signal that enables the pair to gather momentum to break resistance at 0.002.

The strategy is buy on breakout at 0.002. Breach that level and the market reclaims 0.003. Sell that level because it is a strong resistance.

Hourly FCT/BTC Chart on Poloniex

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

As of this writing, FCT/BTC is trading at 0.001738 on Poloniex.

Summary of Strategy

Buy: breakout at 0.002

Target: 0.003

Stop: move below 0.0018 after buying breakout at 0.002.  

 

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.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Altcoins

Trade Recommendation: ETC/BTC Pair Bottoming Out

Published

on

The ETC/BTC market has been in a downtrend after it generated a high of 0.00931529 in June and failed to hold support at 0.006 on Poloniex. Bears repelled any meaningful rally and sent the market to as low as 0.00129881. Fortunately for the bulls, it appears that the pair may have found its bottom.

// -- Discuss and ask questions in our community on Workplace.

Technical analysis shows signs of selling exhaustion. First, ETC/BTC went into extreme oversold territory when the price reached 0.00129881. Second, and more importantly, the market revisited that level recently after it corrected from its move above 0.003. When the pair tested support, 0.00129881 was held even though the volume was twice its daily average on Poloniex. These indicators suggest that the pair has bottomed out.

The strategy is to buy between 0.00129881 and 0.002. Take note: the market is still in a downtrend, but there’s an opportunity to generate profits by trading the range. Sell when the market touches 0.0032.

Daily ETC/BTC Chart on Poloniex

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

As of this writing, the market price of ETC/BTC is 0.00179752.

Summary of Strategy

Buy: between 0.00129881 and 0.002

Support: 0.00129881

Target: 0.0032

Stop: Move below 0.00129881

 

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.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending