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Cryptocurrency markets, particularly altcoins, are facing a brutal week. So many couples are in the oversold or extreme oversold territory. Although it may seem frightening to insert long positions at this point, it is actually a good idea to be counterparts. The immense sale of the last days puts the bulls in a good position to annihilate the short positions.
In line with this, we believe that Bread / Bitcoin (BRD / BTC) is ready for a strong rally.
Technical analysis shows that BRD / BTC seems ready to exit a large fall wedge on the daily chart. Yesterday's candelabra pin bar supports this hypothesis. This shows that fundraisers are buying support.
In addition, we can see a bullish divergence on daily RSI. This also confirms the idea that the market is gaining momentum.
Finally, the couple seems to be at the top or at least near the apex of the falling wedge. With a rebound in progress, the bears would be pressed to generate a lower level so close to the support.
The strategy is to buy the breakout at 0.000055 after the pair has printed a volume of over 2.3 million Bread units. Bears will try to fight to maintain control of the market. BRD / BTC needs buyers to absorb sales pressure.
Once the breakout is complete, the rally that will follow will likely bring the pair to our goal of 0.000075.
The process can take less than a month.
Daily Chart of Bread / Bitcoin on Binance
At the time of writing this article, the pair Bread / Bitcoin is trading at 0,00004612 on Binance .
Strategy Summary
Buy: Breakout at 0.000055 with volume of 2.3 million units Bread
Target: 0.000075
Stop: 0.0000524 after the breakout.
Disclaimer: the writer owns 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.
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