The Request Network/Bitcoin (REQ/BTC) market launched its bull on December 30, 2017 after breaching resistance of 0.000025. Its momentum was so strong that it went as high as 0.0000722 on January 6, 2018. At this point, however, the market was in overbought territory considering that it has grown by over 183% in a week. This inspired a round of profit taking which forced the market to go as low as 0.0000355 on January 16.
Sensing that a higher low was in place, bulls bought positions, and pushed the price up to 0.00005755 on January 18. Bottom pickers exploited the 62.11% increase in two days, and since then, the market has been gradually dropping. This dip can be an opportunity to place buy orders at a discount.
Technical analysis reveal that the Request Network/Bitcoin pair is about to touch support of 0.000025. At this level, those who bought the breakout and the bounce have most likely sold their positions. This can be seen by the significant decline in volume for the last six trading days. As supply dwindles, it can ignite a rally that can bring the market back to life.
The strategy is to buy the support, and sell the resistance. Buy as close to 0.000025 support as possible. Sell as close to 0.00006 as possible. Once bulls successfully defend 0.000025, the pair will most likely resume its move to the resistance level of 0.00006. The process may take about a month.
Daily Chart of Request Network/Bitcoin on Binance
As of this writing, the Request Network/Bitcoin pair is trading at 0.00002563 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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