Trade Recommendation: ChainLink

Trade Recommendation: ChainLink

The ChainLink/Bitcoin pair (LINK/BTC) is one of those rare altcoins that’s in the green. The market is up by 11% year-to-date. It may not sound like much but this is actually positive news to LINK/BTC investors. The market appeared to have weathered the storm. Actually, it looks ready to make a bold statement.

Technical analysis shows that LINK/BTC has broken out of a large falling wedge on the daily chart on August 10, 2018. The breakout looked convincing as well. On that day, the pair printed volume that’s twice its daily average. This attracted breakout players and momentum traders. The surge in buying activity helped push the pair to as high as 0.0000673 on September 20.




While we did miss this trade opportunity, we knew we’d get another crack at it. Breakouts almost always fade so there’s no reason to chase. Based on experience, the best thing to do is to wait for the market to pull back. More importantly, check if the pair is creating a bullish continuation pattern. LINK/BTC meets both of these conditions.

The strategy is to buy as close to 0.0000465 as possible. LINK/BTC is creating a bullish pennant with an apex at this price point. Thus, it is very likely that the market will resume the uptrend once it bounces off this level. If this comes to pass, we have a target of 0.000062.

The process may take a month.

Daily Chart of ChainLink/Bitcoin on Binance






As of this writing, the ChainLink/Bitcoin pair is trading at 0.0000481 on Binance.

Summary of Strategy

Buy: As close to 0.0000465 as possible.

Target: 0.000062

Stop: 0.000045

 

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.

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