There are many cases when the market goes bearish after generating an all-time high. That’s the case for OMNI/BTC. It posted an all-time high of 0.04824320 on the Poloniex exchange on May 31, 2017. In doing so, it created a massive wick above its body, indicating the presence of sellers at that level. The market tried to sustain its ascent, but it turned bearish after failing to hold support at 0.02 on July 9, 2017. OMNI/BTC is still in a downtrend but there’s an opportunity to make a quick buck.
Technical analysis reveal that the market is currently holding long-term support at 0.0025. Every time the pair hits that support level, it bounces and takes out resistance at 0.010. It also breached resistance at 0.015 on three separate occasions. In addition, RSI is also respecting long-term support level. On top of that, the market is already up 12.23% as of this writing. Indicators are flashing a legitimate bounce.
The strategy is to trade the range. Buy zone is between 0.0025 and 0.005. The target range is from 0.010 to the top end of 0.015. Sell midpoint if selling pressure is high; otherwise, ride until 0.015.
Take note: the market is still in a downtrend, but you can make money by buying low and selling high during the consolidation period.
Weekly OMNI/BTC Chart on Poloniex
As of this writing, OMNI/BTC is trading at 0.00354581 on Poloniex.
Summary of Strategy
Buy: 0.0025 and 0.005
Targets: 0.010 and 0.015
Stop: move below 0.0025
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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