The ICON/Bitcoin pair (ICX/BTC) started its bull run on January 1, 2018 when it took out resistance of 0.0004. Even though the pair had no solid base below 0.0004, the breakout was able to generate enough momentum to push the price to as high as 0.0009194 on January 30. In about a month, the market rose by almost 130%. Those who bought the breakout were happy to take profits.
Without a good base to sustain a long bull run, the market plummeted under increased selling pressure. It fell to as low as 0.0003799 on February 5 before it rallied. The pair managed to bounce to 0.0006175 on February 6, but the lower high showed that the market has turned extremely bearish. ICX/BTC responded by posting a series of lower highs and lower lows until it found the bottom at 0.0002135 on March 18. The pair has been rallying since, and it seems poised to launch another bull run.
Technical analysis reveal that ICON/Bitcoin is in the process of taking out 0.0004 resistance. To complete the breakout, however, the pair must print volume of about 20 million ICON units. Those who bought the higher low are likely to take profits at the resistance. The pair needs buyers to accommodate the increased selling activity.
The strategy is to buy the breakout at 0.0004 as long as the prescribed volume is met. If bulls breach the resistance, they will ignite a rally that can take the market to our target of 0.00056. The process may take less than a month.
Daily Chart of ICX/BTC on Binance
As of this writing, the ICON/Bitcoin pair is trading at 0.000401 on Binance.
Summary of Strategy
Buy: Breakout at 0.0004 with 20 million ICON volume.
Stop: 0.00036 after the breakout.
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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