We’ve been watching GoChain (GO/BTC) ever since it breached support of 0.0000055 on February 1, 2019. At that point, we were fairly certain that the market will go to our line in the sand of 0.0000048. That would be a good opportunity to bottom pick the market. It looks like we’re going to get that chance very soon.
Technical analysis shows that GO/BTC is forming a falling wedge on the daily chart. Interestingly, the apex of the wedge is around 0.0000048. With the apex touching our line in the sand of 0.0000048, we have a great setup for a hard bounce. This is a play that have worked well for us in the past.
Another factor that might significantly contribute to the bounce is that the market is trading under oversold conditions. It will likely drop to extreme oversold territory once it touches 0.0000048. The expected selling relief brought about by this condition should help the price go higher.
Lastly, 0.0000048 is our line in the sand because it is where the smart money accumulated GoChain positions from September to October 2018 before launching a bull run. Thus, it makes sense for the market to revisit this level and start a new market cycle.
The strategy is to buy as close to 0.0000048 as possible. As long as GO/BTC trades above this level, it will likely rally to our initial target of 0.0000055. Take that out and the next target is 0.0000065.
The process may take less than a month.
Daily Chart of GoChain/Bitcoin on Binance
As of this writing, the GoChain/Bitcoin pair is trading at 0.00000501 on Binance.
Summary of Strategy
Targets: 0.0000055 and 0.0000065.
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.
Featured image courtesy of Shutterstock.