The Stellar/Bitcoin pair (XLM/BTC) ignited its bull run on December 29, 2017 when it took out resistance of 0.00002. With a good base between 0.000007 – 0.00002, the market soared to 0.00006789 on January 3, 2018. In less than a week, the XLM/BTC grew by almost 240%! Those who bought the breakout were ecstatic to take profits.
As breakout players locked in their gains, the market fell to as low as 0.00003025 on January 16. Bulls bought the dip, but the rally they inspired was good for a lower high of 0.00005827 on January 26.
The bearish price action was a sign for many participants to either take profits or cut their losses. The pair responded by generating a series of lower highs and lower lows until it bottomed out at 0.000021 on March 29. XLM/BTC has been rallying since, and it appears poised to end the correction.
Technical analysis show that Stellar/Bitcoin is creating a good base between 0.00002 and 0.000037. On April 15, it went as high as 0.0000366 with above average volume. This could be an indication that bulls are preparing for a push to breach resistance of 0.000037.
To complete the breakout, the pair must print above 120 million Stellar units in volume. Those who bought the bottom are very likely to take profits at the resistance. XLM/BTC needs buyers to absorb the dumped positions.
The strategy is to buy the breakout at 0.000037 after the prescribed volume is met. If bulls complete the breakout, volatility is likely to increase. This would help the pair to reach our target of 0.000048 in less than a month.
Daily Chart of XLM/BTC on Binance
As of this writing, the Stellar/Bitcoin pair is trading at 0.0000351 onBinance.
Summary of Strategy
Buy: Breakout at 0.000037 with 120 million Stellar volume.
Stop: 0.000035 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.
Featured image courtesy of Shutterstock.