The Stratis/Bitcoin (STRAT/BTC) pair has been bearish since June 14, 2017 when it posted a lower high of 0.00369601. There were multiple attempts to reverse the trend and kickstart a bull run. However, each attempt was used as an opportunity to dump positions.
As a result, the pair is now hovering around 0.0003. It has lost about 92% of its value. The good news is it appears that a bullish reversal is on the horizon.
Technical analysis show that STRAT/BTC is in the narrowest point of a large falling wedge pattern. Breakout appears to be imminent as bulls have been mustering their forces for the last two weeks. This is evident in the extreme volume spikes seen since July 18.
On top of that, we can see a really strong bullish divergence on the daily RSI. The RSI has been generating a series of higher lows. This tells us that the market is significantly gaining strength even though prices continue to drop.
The strategy is to buy the breakout at 0.00032. Ideally, the breakout is pushed by heavy volume of at least 100,000 Stratis units. Those who are buying the pullback might take some profits at the breakout. The market needs buyers to absorb the selling pressure.
Initial target is 0.0006.
The process may take less than a month.
Daily Chart of Stratis/Bitcoin on Poloniex
As of this writing, the Stratis/Bitcoin pair is trading at 0.00028832 on Poloniex.
Summary of Strategy
Buy: Breakout at 0.00032 with volume of at least 100,000 Stratis units.
Stop: 0.0003 after the breakout.
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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