Trade Recommendation: Simple Token

The PotCoin/Bitcoin (POT/BTC) market exhausted its bullishness on July 25, 2017 when it created a lower high of 0.000037. The market unravelled on July 27 when it broke support of 0.0000385. Since then, it created a series of lower highs and lower lows until it bottomed out at 0.00001027 on November 2.

The market rallied after finding its bottom, and went as high as 0.00003999 on December 1. At this point, however, the pair was in overbought territory, and that forced bottom pickers to dump their positions. Faced with heavy selling pressure, the market went as low as 0.00001594 on December 7. Sensing a lower high was in place, bulls rushed in, and bought positions which pushed the market up to 0.00003849 on December 31. Unfortunately for buyers at this level, bears defended the resistance level, and sent the market down to 0.000016 support.  

Technical analysis show that the PotCoin/Bitcoin pair is currently consolidating while locked in a wide range between 0.000016 and 0.0000385. As of this writing, the market is well on its way to 0.000016 support. We can use the existing range to generate profitable trades.

The strategy is to buy the support and sell the resistance. Buy as close to 0.000016 support as possible. Sell as close to 0.0000385 as possible. Once bulls successfully defend 0.000016, the market will most likely restart its climb to the resistance level of 0.0000385. The process may take about a month.

Daily Chart of PotCoin/Bitcoin on Poloniex

As of this writing, the PotCoin/Bitcoin pair is trading at 0.00001646 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.

Featured image courtesy of Shutterstock.

The post Trade Recommendation: Simple Token appeared first on Crypto Currency Online.

from Crypto Currency Online

Author: Crypto Currency Online

Crypto currency online is your best source for up to date crypto currency news and technical information. We have brought this website you informed and up-to-date with all the current changes and trends happening in one of the newest industries available and will continue to you our best to date and informed. Crypto currency mining is becoming more and more popular every day. What we've done combined news, information, my crypto currency charts and the best mining products that you can purchase.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: