Our April 10, 2018 trade recommendation for the Waves/Bitcoin pair (WAVES/BTC) achieved its target on April 28 when it went as high as 0.00073. Those who followed the trade recommendation grew their investments by over 37% in two weeks.
While we expected the pair to range trade, WAVES/BTC is showing signs of strength by overshooting our target and climbing as high as 0.0008996 on April 29. In addition, it appears to be creating a bullish higher low set up around the 38.2% Fibonacci level.
Interestingly, this pullback is happening with decreasing volume. This tells us that those who bought the bottom are not dumping all of their positions. This is positive news because constricting supply increases demand. Under these conditions, we can expect the market to surge in the next few days.
Technical analysis show that Waves/Bitcoin is positioning to take out resistance of 0.0008. This would trigger the inverse head and shoulders reversal pattern on the daily chart.
To complete the breakout, the pair must generate at least 3.1 million units of Waves in volume. Those who bought the higher low are likely to take some profits at the resistance. The market needs buyers to absorb the selling pressure.
The strategy is to buy the breakout at 0.0008 as long as the volume requirement is met. Once bulls complete the breakout, the pair may explode to our target of 0.0011. The process can take a month.
Daily Chart of WAVES/BTC on Binance
As of this writing, the Waves/Bitcoin pair is trading at 0.0007206 on Binance.
Summary of Strategy
Buy: Breakout at 0.0008 as long as the volume is 3.1 million units of Waves.
Stop: 0.00075 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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