The Waves/Bitcoin pair (WAVES/BTC) has been range trading between 0.00051 – 0.0008 for the better part of this year. The pair had an opportunity to break out of the range on May 8 as it appeared to be carving a higher low at 0.0007 support. However, it broke the support on May 21. This triggered a selling frenzy that saw the pair drop to as low as 0.000487 on June 14.
While WAVES/BTC dropped, this presented us with the possibility to bottom pick the market.
Technical analysis reveal that Waves/Bitcoin is poised for a strong rally. This view comes after the pair respected support of 0.00051. Even though WAVES/BTC went below the support on June 14, bulls rushed in to defend it. On top of that, a bullish divergence can be spotted on the daily stochastics. This suggests a possible bottom and trend reversal.
In addition, the 4-day, 8-day, and 21-day moving averages are attaching to the daily candle’s body and reversing direction. This tells us that the expected move up is likely sustainable.
The strategy is to buy as close to 0.00051 support as possible. If bulls continue to preserve the support, they will attract the momentum they need to move to our target of 0.0007. Sell immediately because it is very likely that the pair will encounter stiff resistance at this level.
The process may take a month.
Daily Chart of WAVES/BTC on Binance
As of this writing, the WAVES/Bitcoin pair is trading at 0.0005223 on Binance.
Summary of Strategy
Buy: As close to 0.00051 as possible.
Target: 0.0007
Stop: 0.00049