Lisk/Bitcoin (LSK/BTC) has been brutally clobbered this year. The pair lost around 90% of its value from the high of 0.003398 on February 10, 2018. The good news is that bulls have had it. They are taking no more. Recent price action shows their conviction.
Technical analysis reveal that LSK/BTC has broken out of a long falling wedge pattern on the daily chart. The breakout looks convincing because of the reasons below.
First, the pair generated above average volume in the last four days. This is a good sign that bulls are buying the market. In fact, the last time LSK/BTC printed such heavy volume was back in April 2018.
On top of that, LSK/BTC has also broken out of a falling wedge on the daily RSI. The breakout looks legitimate as it was a sharp rally rather than a quick peek. In addition, we see a large bullish divergence on the MACD as well as a bullish cross. All these signals indicate that LSK/BTC has returned from the dead.
The strategy is to buy the retest of the breakout as close to 0.00048 as possible. If bulls defend this level, it is very likely that there will be a quick rally to our initial target of 0.0007. We’ll revisit the trade once the target is hit.
The process may take less than a month.
Daily Chart of Lisk/Bitcoin on Poloniex
As of this writing, the Lisk/Bitcoin pair is trading at 0.00052094 on Poloniex.
Summary of Strategy
Buy: Buy as close to 0.00048 as possible.
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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