The Bytecoin/Monero pair (BCN/XMR) launched its bull run on January 5, 2018 when it took out resistance of 0.00002. With a pretty solid base under 0.00002, the market skyrocketed to 0.00005097 on January 6. In 24 hours, the pair soared by almost 155%. Those who bought the breakout took profits.
As the market succumbed to heavy selling pressure, it nosedived to 0.000025 on January 11. Bottom pickers bought the dip, but they could only generate a dead cat bounce that reached 0.0003172. The lower high killed the market’s bullish momentum.
BNC/XMR resumed its plummet until it bottomed out at 0.00000989 on March 3. The pair consolidated for about a month until it breached resistance of 0.000015 on April 13. The price action showed that BNC/XMR has come back to life.
Technical analysis show that Bytecoin/Monero is attempting to breach resistance of 0.00002. However, the pair is flashing overbought signals. The pair went up so fast that those who bought the bottom are starting to take profits. Even though bulls are working hard to claim 0.00002, a look at the bi-hourly chart reveals that the pair is creating a series of lower highs and lower lows. This indicates that bears are likely to win the day.
The strategy is to wait for the dip and buy as close to 0.000015 as possible. At this price level, the market would have most likely shred off overbought signals. In addition, it could be the higher low that propels the market to our target of 0.00003.
Daily Chart of BCN/XMR on Poloniex
As of this writing, the Bytecoin/Monero pair is trading at 0.00001962 on Poloniex.
Summary of Strategy
Buy: Buy on dips as close to 0.000015 as possible.
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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