The FunFair/Bitcoin (FUN/BTC) pair started its uptrend on December 29, 2017 when it took out resistance of 0.0000039. This triggered the rounding bottom reversal pattern on the daily chart. The breakout attracted so much momentum that the pair soared to 0.00001385 on January 4, 2018. In less than a week, FUN/BTC grew by over 246%.
At this price level, the market was in extreme overbought territory. Those who bought the breakout saw it as an opportunity to take profits. As the market succumbed to selling pressure, it dropped to 0.00000557 on January 17. While FUN/BTC bounced, it could only go as high as 0.00001226 on January 19.
With a lower high in place, the pair turned bearish. It generated a series of lower highs and lower lows until it bottomed out at 0.0000039 on March 18. From there, the market rallied to 0.0000062 resistance. Even though the pair has been correcting since, this could be your chance to buy the support.
Technical analysis reveal that FunFair/Bitcoin is respecting 0.0000039 support, which also happens to be the 23.6% Fibonacci level. While the pair went as low as 0.00000374 on June 13, bulls came to the rescue and lifted the market.
Moreover, the pair is respecting RSI support of 30. Plus, we can see the 4-day, 8-day, and 21-day moving averages reversing their direction. These indicators tell us that we are likely to see a bounce soon.
The strategy is to buy as close to 0.0000039 support as possible. If bulls defend the support again, they may spark a rally to resistance of 0.00000555. We’ll revisit the trade once the target is hit.
The entire process might take less than a month.
Daily Chart of FunFair/Bitcoin on Binance
As of this writing, the FunFair/Bitcoin pair is trading at 0.00000391 on Binance.
Summary of Strategy
Buy: As close to 0.0000039 as possible.
Target: 0.00000555
Stop: 0.00000374