The Bancor/Bitcoin (BNT/BTC) pair dropped to as low as 0.00017359 on September 12, 2018. At that price, the market lost over 84% of its value from this year’s high of 0.00110062.
It looked as if the pair had more room to plummet. This is because bears managed to breach historic support of 0.000185. However, bulls held their ground and lifted BNT/BTC above the support. This created a bear trap and gave the market the strength to carve a bottom. More importantly, it provided bulls the fuel to kickstart a bull run.
Technical analysis shows that BNT/BTC is positioning to take out resistance of 0.000227. Breach of this resistance would trigger the breakout from the symmetrical triangle pattern on the 4-hour chart.
On top of that, we can see the daily RSI generate a bullish divergence. Plus, it is forming its own symmetrical triangle. The consecutive higher lows is an encouraging signal. This tells us that bulls are no longer waiting for oversold conditions before entering the buying scene.
The strategy is to buy the breakout at 0.000227 as long as the market prints volume of at least 15,000 Bancor units on the 4-hour chart. Bears will push back to keep control of the market. BNT/BTC needs buyers to absorb the expected selling pressure.
Once breakout is complete, the market will likely generate a rally to our target of 0.0003. The process may take less than a month.
4-Hour Chart of Bancor/Bitcoin on Binance
As of this writing, the Bancor/Bitcoin pair is trading at 0.000226 on Binance.
Summary of Strategy
Buy: Breakout at 0.000227 after volume of 15,000 Bancor units.
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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