The Golem/Bitcoin (GNT/BTC) pair came off lows of 0.00001832 on September 12, 2018. At that price, the market was down by over 82% from the 2018 peak of 0.000104. While such heavy losses would have deterred any retail investor from entering the market, bottom pickers and bargain hunters started to place buy orders. Their buying activities helped the market establish a bottom at around 0.00002.
The bottom attracted more participants. Then on October 15, GNT/BTC generated a bullish higher low setup. Bulls used this to stage a breakout rally.
Technical analysis shows that GNT/BTC has taken out resistance of 0.000026 on October 23. This triggered the breakout from the inverse head and shoulders pattern on the daily chart. The price action has technically reversed the market’s trend.
The breakout looks convincing, too. While GNT/BTC printed thin volume on the day of the breakout, there was a follow through on October 25. GNT/BTC generated volume that’s over 230% of its daily average.
The strategy is to buy on dips as close to 0.000026 as possible. The market is in overbought territory on the daily RSI. Profit taking must take place to help cool off technical indicators.
Ideally, GNT/BTC builds a new base at 0.000026 and establish it as a new support before going higher. If it moves as expected, then we will likely see the market climb to our target of 0.000046.
The process may take more than a month.
Daily Chart of Golem/Bitcoin on Binance
As of this writing, the Golem/Bitcoin pair is trading at 0.00002861 on Binance.
Summary of Strategy
Buy: On dips as close to 0.000026 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.
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