The Vertcoin/Bitcoin pair ignited its bull run on October 21, 2017 when it broke out of resistance of 0.00035. It went as high as 0.00096219 on October 28 before succumbing to selling pressure. In just a matter of seven days, the market grew by 174.91%. Such a rapid rise in value was taken advantage by those who bought the breakout at 0.00035.
Faced with heavy selling pressure, the market went below 0.0007 support on November 1. It went as low as 0.000038751 on November 3 before rallying back up to 0.00087863 on December 6. From that point, the market has been quietly dropping all the way down to support of 0.00035. That’s good news for you because the Vertcoin/Bitcoin pair is back at the level where its bull run started.
Technical analysis show that the market is creating a bullish higher low setup in the weekly chart at the price of 0.00035 bitcoins. With volume steadily declining in the seven weeks of trading, we can assume that the consolidation period is almost over. More importantly, the range is narrowing as seen in the contraction of the Bollinger bands. As bid and ask prices meet, the market will most likely explode up since the market is currently bullish.
The strategy is to buy as close to 0.00035 support as possible. Once consolidation is over, the market will likely restart its ascent towards our target of 0.0009. The entire process can take a month.
Weekly Chart of Vertcoin/Bitcoin on Poloniex
As of this writing, the Vertcoin/Bitcoin pair is trading at 0.00037592 on Poloniex.
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.