After taking out resistance at 0.000055 on June 8, it took BitShares/Bitcoin only two days to generate an all-time high at 0.00017642 on Poloniex. Unfortunately for the bulls, the bears exploited the market’s rapid climb. Those who bought below 0.000055 took profits with tremendous volume. As a result, the market failed to close above 0.00015 between June 10 – 13 which was seen by participants as a bearish signal.
BitShares became extremely bearish after it broke support at 0.000055 on July 11. It settled at 0.000007 on November 3 where it consolidated for over a month. On December 20, the market broke resistance at 0.000030 to mark the end of the consolidation period. BitShares has been rallying since and has even breached resistance at 0.000055 on January 1, 2018, albeit briefly.
Technical analysis reveal a bullish reversal pattern that relies on the successful breakout at 0.000055. While bears continue to defend that level, the recent dip enables sellers who bought the 0.000030 breakout to dump their positions. More importantly, it gives you an opportunity to buy cheap. On the next attempt to take out 0.000055, the market requires 1,600 of Bitcoin volume to confirm the breakout.
The strategy is to buy as close to 0.000042 support OR breakout at 0.000055 with 1,600 of Bitcoin volume on Poloniex. If the price exceeds 0.000055 and we have a target of 0.0001.
Daily Chart of BitShares/Bitcoin on Poloniex
As of this writing, the BitShares/Bitcoin pair is trading at 0.00005314 on Poloniex.
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.
Featured image courtesy of Shutterstock.
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