Double Bottom in Crypto 10 Index, Expected Rally to 30K
Trend Analysis
The main view of this trade idea is on the Daily Chart.
The Crypto 10 Index appears to have made a double bottom around the 18,000 support level. The Cryptocurrency Index also seems to be in the midst of a triangle breakout from the resistance line at the lower highs of 25,950 and 24,450. If the breakout occurs, the Crypto 10 Index could be seen trading around the 30,000 price level.
The internal bullish nature of the Index is also there if one were to look at the price movements on the 15-Min, 2-Hour and 4-Hour timeframes. However, there appears to be some resistance around the 24,000 price level.
Technical Indicators
The technical indicators are supporting the bullish nature of the Crypto 10 Index. The security is currently above its 50-Day Moving Average and its Supertrend indicator is in buy-mode. The Awesome Oscillator is above 0 and green while the RSI is above 50.
Recommendation
The recommendation will be to go long at market, with a stop loss at 17,070 and a target of 30,000. This produces a risk/reward ratio of 1.54.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing, I have exposure to the Crypto 10 Index.
The main view of this trade idea is on the Daily Chart.
The Crypto 10 Index appears to have made a double bottom around the 18,000 support level. The Cryptocurrency Index also seems to be in the midst of a triangle breakout from the resistance line at the lower highs of 25,950 and 24,450. If the breakout occurs, the Crypto 10 Index could be seen trading around the 30,000 price level.
The internal bullish nature of the Index is also there if one were to look at the price movements on the 15-Min, 2-Hour and 4-Hour timeframes. However, there appears to be some resistance around the 24,000 price level.
Technical Indicators
The technical indicators are supporting the bullish nature of the Crypto 10 Index. The security is currently above its 50-Day Moving Average and its Supertrend indicator is in buy-mode. The Awesome Oscillator is above 0 and green while the RSI is above 50.
Recommendation
The recommendation will be to go long at market, with a stop loss at 17,070 and a target of 30,000. This produces a risk/reward ratio of 1.54.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing, I have exposure to the Crypto 10 Index.
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