Our April 16, 2018 trade recommendation for the Stellar/Bitcoin pair (XLM/BTC) hit its mark on April 29 when it went as high as 0.00004899. Those who followed the trade recommendation grew their investments by over 30% in less than two weeks.
We knew that resistance of 0.000048 would hold as it is the 78.6% Fibonacci level. XLM/BTC tried to break the resistance but bears defended their territory. The confirmation came on May 2nd when the retest of resistance was successful. From that point, the market generated 10 consecutive red candles on the daily chart.
The good news is XLM/BTC respected the 0.000035 support on May 23. This presents an opportunity to bottom pick the market.
Technical analysis show that Stellar/Bitcoin is creating a bullish higher low setup at 0.000035. We have several reasons to support this view.
First, the market jumped on May 29 after a successful retest of the support level. Second, volume has picked up since. This suggests that bulls are buying the higher low. Lastly, we have the 4-day, 9-day, and 21-day moving averages attaching to the daily candle and reversing their direction. This indicates a possible move up.
The strategy is to buy as close to 0.000037 as possible. As long as bulls stay above this level, they will attract the momentum they need to climb to our target of 0.0000485.
The process may take less than a month.
Daily Chart of Stellar/Bitcoin on Binance
As of this writing, the Stellar/Bitcoin pair is trading at 0.00003925 on Binance.
Summary of Strategy
Buy: Buy as close to 0.000037 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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