The Burst/Bitcoin pair broke out of a rounding bottom reversal pattern on December 22, 2017 when it breached resistance of 0.000003. The bullish move propelled the market to as high as 0.00000726 on January 6, 2018 before facing heavy selling pressure. Those who bought when the market breached 0.000003 took the chance to dump their positions. As the market entered a corrective phase, it broke below 0.000006 on January 14.
While the retreat may have snuffed out the market’s momentum, the bull run is still intact as long as it is above 0.000003. That had to be stated outright to purge any fear that may cloud your judgment, especially since the entire bitcoin market on Poloniex is suffering a huge down day. As one legendary investor sums it up, “the best time to buy is when there’s blood on the streets”.
Technical analysis reveal that the Burst/Bitcoin pair is about to touch support at 0.000003. Again, the market is bullish as long as this level holds. The positive news is the market is close to being oversold. Sellers will eventually run out of ammunition, and the market will most likely bounce.
The strategy is to wait for bulls to defend 0.000003. If this level is respected, then buy as close to 0.000003 as possible. After a brief consolidation period, the market will resume its ascent to 0.000006 which is our target. The entire process can take a month.
Daily Chart of Burst/Bitcoin on Poloniex
As of this writing, the Burst/Bitcoin pair is trading at 0.00000341 on Poloniex.
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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