The Lunyr/Bitcoin pair (LUN/BTC) started its uptrend on August 11, 2017 when it took out resistance of 0.002. The breakout attracted so much momentum that the pair became parabolic on the daily chart. With its supercharged velocity, LUN/BTC skyrocketed to 0.0072886 on August 12. In one day, the pair climbed by almost 265%!
At this price point, the market was extremely overbought. Those who bought the breakout and below it merrily sold their positions. The heavy selling drove the pair down to 0.00239759 on August 22.
Seeing that the pair respected the 38.2% Fibonacci level, bottom pickers bought the dip. This sparked a rally to a lower high of 0.00413 on August 28. With a lower high in place, the market crashed.
LUN/BTC eventually found a bottom at 0.0003 on December 17. The good news is the pair has been rallying since. This could be your chance to buy the next higher low.
Technical analysis show that Lunyr/Bitcoin appears to be creating a symmetrical triangle pattern on the daily chart. It seems to be in the midst of an E-wave, which is often the last leg down. We’ll buy the bottom of this move down.
The strategy is to buy the higher low as close to 0.00145 as possible. If bulls can stay above this level, they may spark a rally to our target of 0.002. We’ll revisit the trade once it hits the target.
The process may take less than a month.
Daily Chart of Lunyr/Bitcoin on Binance
As of this writing, the Lunyr/Bitcoin pair is trading at 0.00148836 on Bittrex.
Summary of Strategy
Buy: As close to 0.00145 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.
Featured image courtesy of Shutterstock.