Trade Recommendation: district0x/Bitcoin
The district0x/Bitcoin (DNT/BTC) market kick started its uptrend on December 31, 2017 when it broke out of a bullish reversal pattern at 0.000009. Its momentum was so strong that even though it was in oversold territory during the breakout, it continued to skyrocket. The market reached as high as 0.00002980 on January 6, 2018 before bears took over. In about a week, the DNT/BTC pair grew by an astounding 231%.
The market closed below 0.000024 on the same day as profit-taking became the theme. While the pair tried to claim 0.000024 resistance multiple times until January 13, bears repelled every single attempt. As a result, the market tumbled, and fell to as low as 0.00000870 on February 6.
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Technical analysis reveal that the DNT/BTC pair respects support of 0.000009. In fact, the market is bouncing as of this writing with extremely high volume. Today’s volume has surged to 53.76 million DNT when the daily average is just about 11.28 million DNT. This is encouraging because it means that there are plenty of market participants holding positions at this level.
The strategy is to buy as close to 0.00001 as possible. This bounce will most likely propel the market up to resistance of 0.000024. The entire process can take a month.
Daily Chart of district0x/Bitcoin on Binance
As of this writing, the district0x/Bitcoin is trading at 0.00001132 on Binance.
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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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