The ICON/Bitcoin pair (ICX/BTC) has looked bearish since February 3, 2018 when it took out support of 0.0006. This triggered the double top pattern on the daily chart. The breakout forced those who bought above 0.00006 to cut their losses. This started a bear run that has driven the market to as low as 0.0002041 on July 12.
The good news is the market appears to show signs of reversal. We have technicals to support our claim.
Technical analysis show that ICON/Bitcoin is on the verge of breaking out of a large falling wedge pattern. The pair has a bullish bias for the following reasons.
First, all notable support and resistance levels are converging at key support of 0.00021. Bulls have preserved this level since the second half of December 2017. Technical indicators show that they are likely to defend it again.
We have the daily RSI respecting support of 28. Even though it has yet to break out of the resistance, the fact that it is near oversold levels tells us that a breach of the resistance is very likely.
In addition, the daily MACD is showing a bullish cross. This suggests that the market is starting to show signs of strength.
The strategy is to buy as close to 0.00021 support as possible. If the market manages to stay above this level, bulls will inspire a rally to our initial target of 0.00036. Take that out and the market can climb to 0.00045.
The process may take more than a month.
Daily Chart of ICON/Bitcoin on Binance
As of this writing, the ICX/BTC pair is trading at 0.0002167 on Binance.
Summary of Strategy
Buy: As close to 0.00021 as possible.
Target: 0.00036 first and then 0.00045.
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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