Trade Recommendation: Waves | Hacked: Hacking Finance
Waves (WAVES/BTC) is an example of what happens when a parabola bursts. On December 4, 2018, Waves ignited its parabolic run after taking out resistance of 0.0004. This triggered the breakout from a double bottom pattern on the daily chart which catapulted the market to as high as 0.001209 on December 19, 2018. That’s an increase of over 200% in about two weeks.
From that point, Waves went on a downward spiral. It has been correcting since December 2018 and correcting hard. Nevertheless, it is approaching a price where it is attractive for bottom picking.
Technical analysis shows that WAVES/BTC is headed back to support of 0.00024. We have this view because bulls gave up 0.0004. They tried to recover it yesterday, May 23rd, but bears were able to defend their territory. In other words, yesterday’s price action was a successful bearish retest.
Now, 0.00024 is very likely to hold because that’s the price level where bulls stopped the 2018 bear market bleeding. They built a solid base around that area for four months. Thus, we expect buyers to return once this cryptocurrency hits 0.00024.
The strategy is to buy as close to 0.00024 as possible. If bulls defend the support, we can expect Waves to rally to our target of 0.0004.
The process may take a month.
Daily Chart of Waves/Bitcoin on Binance
Summary of Strategy
Buy: As close to 0.00024 as possible.
Target: 0.0004
Stop: 0.00023
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.
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