The IOTA/Bitcoin pair (IOTA/BTC) ignited its bull run on December 3, 2017 when it took out 0.00014 resistance. The price action triggered the rounding bottom reversal pattern on the daily chart, which attracted breakout traders and trend followers. The bullish momentum sparked by the breakout pushed prices to as high as 0.00047352 on December 6. In three days, the market rose by close to 240%.
At this point, however, IOTA/BTC flashed extreme overbought signals. Those who bought the breakout started dumping positions, causing the market to plunge to 0.000172 on December 17. While bottom pickers bought the dip, they were only able to carry the market to 0.00033743 on December 19. Sensing that a lower high was in place, participants either took profits or cut their losses. The market resumed its drop, but it appears that the pair has hit the bottom.
Technical analysis show that IOTA/Bitcoin may have bottomed out at 0.00012953 on March 16, 2018. The low was followed by a surge in price and volume on March 18. The move enabled the bulls to reclaim critical support of 0.00014, and so far, the market appears to be creating a base at this level.
The strategy is to buy as close to 0.00014 as possible. If bulls continue to hold on to the support, the market will most likely range trade between 0.00014 and 0.0002, which is our target. The process may take less than a month.
Daily Chart of IOTA/BTC on Binance
As of this writing, the IOTA/Bitcoin pair is trading at 0.00014323 on Binance.
Summary of Strategy
Buy: As close to 0.00014 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.