Image default
altcoin

Trade Recommendation: NavCoin

The NavCoin/Bitcoin pair (NAV/BTC) breached resistance of 5,000 satoshis on September 22, 2018. This triggered the breakout from the rounding bottom pattern on the 4-hour chart. The price action attracted breakout traders and trend followers. This sparked a strong rally to 9,230 satoshis on the same day.

Of course, the strong rally was met with fierce selling. After all, NAV/BTC was extremely overbought on the 4H RSI. As bottom pickers and breakout traders sold positions, the market dropped to as low as 4,290 satoshis on October 12.

Even though the market went below the breakout of 5,000 satoshis, it would have maintained its bullish momentum if not for the massive dumps over the last two weeks. The good news is that NAV/BTC has managed to maintain the midpoint of the current range amidst the selloff.

Technical analysis shows that NAV/BTC is preserving support of 4,000 satoshis. We believe the market will hold this level for the following reasons.

First, we are seeing a bullish divergence on the 4H RSI. This suggests that bulls are beginning to gather strength at these levels.

In addition, you can see long wicks below the daily candle’s body every time the market tries to go below 4,000 satoshis. This is a sign that participants are rejecting attempts to go below the support.

Lastly, the thin volume over the last few days favors the bulls. This means that participants are holding on to their positions. However, buyers must show up soon or else those who are holding might be tempted to sell considering market conditions. Thus, it is important to watch volume levels.

The strategy is to buy the dip, as close to 4,000 satoshis as possible. If bulls hold the line, they will likely inspire a rally to the top end of the current range at 5,000 satoshis. The process may take a month.

Daily Chart of NavCoin/Bitcoin on Binance





As of this writing, the NavCoin/Bitcoin pair is trading at 4,270 satoshis on Binance.

Summary of Strategy

Buy: As close to 4,000 satoshis as possible.

Target: 5,000 satoshis.

Stop: 3,890 satoshis.



NOTE: a satoshi is the smallest unit of Bitcoin, which equals to 0.00000001 BTC.

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.

Related posts

Why Investors Should Pay Attention to SkyCoin

admin

Why Investors Should Pay Attention to Gnosis

admin

Factom (FCT) Rides Recovery to 65% Gains as Mortgage Service Adopts Blockchain

admin

2 comments

ergfir nolikz January 10, 2019 at 6:54 pm

You made certain nice points there. I did a search on the matter and found nearly all folks will go along with with your blog.

Reply
ergfirnolikz January 10, 2019 at 7:14 pm

I’d have to examine with you here. Which is not something I often do! I get pleasure from reading a submit that may make folks think. Additionally, thanks for allowing me to comment!

Reply

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More