The Kyber Network/Bitcoin (KNC/BTC) market propelled its bull run on January 7, 2018 after it breached resistance of 0.0003. It went as high as 0.00039998 on January 20 before succumbing to sellers. In less than two weeks, the pair grew by 33.33%, and that was enough for breakout traders to take profits.
As sellers began dumping shares, the market retreated to as low as 0.00029400 on January 23. Sensing a new higher low was created, bulls attacked the market and sent it to as high as 0.00044. At this point, it was near overbought territory, which forced the pair to take a slight dip.
Technical analysis show that the KNC/BTC pair is creating a bullish higher low setup at 0.0003. Yesterday’s trading volume was extremely high at 2.357 million KNC when the average is just about 1.342 million KNC, which indicates capituation. Moreover, the Bollinger bands are contracting which means that ask and bid prices are about to meet. Since we are in a bullish market, the pair will most likely explode up as soon as the trading range narrows.
The strategy is to buy around the 0.0003 support level. Once the pair is done consolidating, it will most likely resume its ascent to the breakout target of 0.00047. The entire process might take less than a month.
Daily Chart of Kyber Network/Bitcoin on Binance
As of this writing, the Kyber Network/Bitcoin pair is trading at 0.00029187 on Binance.
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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