Our March 18, 2019 trade recommendation for VeChain/Bitcoin (VET/BTC) hit its first target. On April 1st, the market climbed as high as 0.00000155. Those who followed the trade plan grew their investments by over 22 percent in less than two weeks.
Unfortunately, VeChain corrected before it hit our second target. It corrected really hard as bears managed to breach support of 0.00000105. Keep in mind that bulls spent four months creating a base close to that support. This is why it was a bit surprising that bears took it out with ease. Nevertheless, we are confident that bears can no longer continue their rampage.
Technical analysis shows that VET/BTC is carving a bottom at the support of 0.0000008. We have this view because the market refused to go below this level on May 13th. In addition, the oversold conditions helped spark a rally that sent VeChain to as high as 0.0000011 on May 18th.
While the market has been correcting since, we expect it to paint an Adam and Eve double bottom pattern. Technical indicators support this bias. First, we see the daily RSI printing a higher low setup at 37. On top of that, we are starting to see volume come to life. This is an indication that bottom-pickers are slowly returning.
The strategy is to buy on dips as close to 0.0000008 as possible. As long as VeChain remains above this level, it will likely attract the momentum to climb to our initial target of 0.00000105. Take that out and 0.00000125 is next.
The process may take less than a month.
Daily Chart of VeChain/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.0000008 as possible.
Targets: 0.00000105 and 0.00000125.
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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