The Qtum / Bitcoin pair (QTUM / BTC) has been falling by 82% since the beginning of the year. The market has gone through a long and painful downtrend from the start of this year. Just looking at the chart you can make you feel depressed even if you've never invested in the couple. The sharp falls in this bear market have received little or no resistance from the bulls. It is as if the bulls had lost hope.
At this point, however, one pays to be a contrarian. Despair and depression are signs of a fund. "Smart money" usually comes when the public has left the market. We are starting to see this in QTUM / BTC.
Technical analysis shows that the pair is above its historical support of 0.0006. This is the market line in the sand. The bulls must defend it if they have any hope of keeping the market stable. It seems they received the reminder.
On August 14, 2018, the volume suddenly increased when QTUM / BTC fell to 0.00061. The volume remained high until 17 August, when the market printed the volume that has never been seen since April 2018. Someone is buying support and someone is buying in bulk. For this someone, the market does not seem desperate or depressing.
The strategy is to buy as close as possible to the support of 0.0006. If backtesting historical support is a success, QTUM / BTC may be able to generate the momentum needed to overcome the big wedge and the falling rally to our target of 0.001.
The process may take less than a month.
Daily chart of Qtum / Bitcoin on Binance
At the time of writing this article, the Qtum / Bitcoin pair is trading at 0.000662 on Binance .
Buy: As close to 0.0006 as possible.
Disclaimer: The writer has bitcoins, Ethereum and other cryptocurrencies. It holds investment positions in the currencies, but does not carry out short-term or day trading activities.
Featured image courtesy of Shutterstock.