The Dash/Bitcoin pair (DASH/BTC) started flashing signs of bullishness when it reclaimed 0.042 support on November 8, 2017 which negated the breakdown that occurred on November 1. The price action attracted momentum traders who helped push the market to as high as 0.09521 on November 12. In four days, the pair rose by almost 130%. Those who bought at 0.042 support were happy to take profits.
As selling commenced, DASH/BTC plummeted to as low as 0.000024 on December 4 before bulls stepped in to close the day at 0.066189 and keep the market stable. The recovery inspired a rally that lifted the market to 0.0948 on December 20. Sensing that a lower high was in place, market participants started to take profits or cut their losses. DASH/BTC responded by creating a series of lower highs and lower lows until recent events.
Technical analysis reveal that Dash/Bitcoin may be bottoming out at 0.042 support. Volume has been extremely high since March 16, 2018. The volume even increased on March 29 when the pair hovered above 0.042. This tells us that bulls are prepared to defend the support. In addition, a bullish divergence was seen on the RSI, which suggests that a reversal might be on the horizon.
The strategy is to buy as close to 0.042 as possible. If bulls preserve this support, they may create a base at this level to climb to our target of 0.06. For now, the market will range trade as participants accumulate positions in preparation for the next big move up. The process may take less than a month.
Daily Chart of DASH/BTC on Binance
As of this writing, the Dash/Ethereum pair is trading at 0.043326 on Binance.
Summary of Strategy
Buy: As close to 0.042 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.