The PIVX/Bitcoin pair (PIVX/BTC) took out resistance of 20,000 satoshis on October 18, 2018. This enabled the pair to break out of a cup and handle pattern on the 4-hour chart. The breakout appears to be valid as the market printed extremely heavy volume. On that day, PIVX/BTC had volume of close to 300% of its average daily volume.
The heavy volume breakout attracted traders who were staying on the sidelines. This ignited a rally to 24,880 satoshis on the same day. At that point, however, technical indicators were overheating. The RSI was in overbought territory. In addition, the daily candle had a long wick above its body.
These were signals that PIVX/BTC was not yet ready to move up. Nevertheless, the conditions offer an opportunity that we can take advantage of.
Technical analysis shows that PIVX/BTC is currently flipping 20,000 resistance into support. While this may not sound like a big move, the flip is essential in the market’s uptrend. First, it validates the trend reversal. More importantly, it enables the pair to create a new base of buyers for the next leg up.
On top of that, we can see that the market is trading above the 100-day and 200-day moving averages. This tells us that the dip is just temporary and the uptrend is still intact.
The strategy is to buy the dip as close to 20,000 satoshis as possible. As long as the market is above this support, PIVX/BTC has the momentum to rally our target of 30,000 satoshis.
The process may take a month.
Weekly Chart of PIVX/Bitcoin on Binance
As of this writing, the PIVX/Bitcoin pair is trading at 21,110 satoshis on Binance.
Summary of Strategy
Buy: As close 20,000 satoshis support as possible.
Target: 30,000 satoshis
Stop: 19,000 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.
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