The primary reason why we don’t allow the fear of missing out lure us into buying coins that have already pumped is because markets always pull back. With a little patience, you can usually get your orders filled at your desired price or at least close to it.
Take for example 0x (ZRX/BTC). The market climbed as high as 0.000219 in May 2018. Almost a year later, 0x is back at the level where it started trading on Binance at 0.000063. If you bought the top and held on to your positions, you would have lost over 70% of your investments. Nevertheless, it appears that 0x is in a great position to make up for some of those losses. Thus, bottom-pickers and bargain hunters may want to look into this trade.
Technical analysis shows that ZRX/BTC may be printing a short-term bottom at 0.000063. This price area is a key level for the market. When 0x recovered this support in March 2018, it ignited a strong rally that sent the market to an all-time high of 0.000219 on Binance. Therefore, we expect savvy traders and bargain hunters to go long on the market at current levels.
So far, participants are reacting according to expectations. 0x showed signs of life as soon as it touched this level on February 14, 2019. On top of that, the daily RSI is printing a bullish divergence. This tells us that bullish momentum is on the rise.
The strategy is to buy as close to 0.000063 as possible. As long as 0x trades above this level, bulls will likely gather the momentum to climb to our target of 0.00008056.
The process may take less than a month.
Daily Chart of 0x/Bitcoin on Binance
As of this writing, the 0x/Bitcoin pair is trading at 0.0000641 on Binance.
Summary of Strategy
Buy: As close to 0.000063 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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