The Waves/Bitcoin pair (WAVES/BTC) started to show bearish signs on December 30, 2017 when it generated a lower high of 0.0009896. Things went from bad to worse for the market when it broke below support of 0.0008 on January 11, 2018 and nosedived to as low as 0.0005191. While bulls stepped in to keep the market stable, the huge drop was a clear signal to participants that WAVES/BTC has become extremely bearish.
Savvy traders and investors either started to take profits from the dip or cut their losses. The pair then created a series of lower highs and lower lows until it went as low as 0.0005060 on April 2. In about four months, the pair has lost close to 50% of its value. Nevertheless, it appears that the market may be about to reverse its fortunes soon.
Technical analysis show that Waves/Bitcoin appears to be bottoming out at 0.00051 support. For about a month now, the market has been printing extremely high volume around the support. This indicates that bulls are locked and loaded to defend 0.00051. More importantly, RSI is on the rise while price remains around 0.00051. This is a good sign that the market is gaining bullish momentum.
The strategy is to buy as close to 0.00051 support as possible. If bulls continue to defend this support, they may use it to climb to our target of 0.0007. WAVES/BTC will most likely range trade for now, so sell immediately once the target is hit.
Daily Chart of WAVES/BTC on Binance
Summary of Strategy
Buy: As close to 0.00051 as possible.
Target: 0.0007
Stop: 0.0005060
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.