$ZRX #0x - a perfect example of 61.8% Fibonacci retracementHello Lads and Ladies,
The daily TA grind continues now and we will start now with the requested coin 0xBTC. It has had some pretty nice and steady pushes and made it into headlines recently.
To begin with, we can see a very clear ascending trend line which has been confirmed multiple times since the beginning of this year.
We saw 0xBTC coming down to it once again and bouncing from there while making 60% gains, of course it had to retrace and in this case it was very obvious to use the fibonacci tool because, which then worked out like in the textbook. It bounced from the 61.8% line and made another 50% gains and is now currently in its retracement process.
The winning question here is to where it will retrace and where should you put in buy orders.
Here come some interesting factors into account. First of all, the easiest and safest way would be to say it will retrace again to the 61.8% line and then make another 40% push.
BUT we have two intermediate supports on its way down, which might be strong enough to hold 0xBTC there and start a new push from there. These two intermediate supports are located at 16k satoshi and 15.5k satoshi.
Here is what I think will happen and why.
I strongly believe that we will see 0xBTC hit the recent 61.8% line and then a bounce from there on. A very strong indicator for this is that this particular line is not just the 61.8% line but as well a strong support and resistance line historically. Moreover, the two intermediate support lines are just not strong enough to make it bounce from there. I would give them maximum just one small green candle on the daily and then we would see the retirement continue. In addition to that, right now as alt coins are just "suffering" from the Bitcoin push, these small supports are less likely to hold. The desired solution for this would be the recent 61.8% line and after it a bounce. Nevertheless, keeping a tight stop loss is very important because after that there is not much support left downwards and the next stop would be most likely the previous 61.8% and with it the ascending trend line. By saying support I mean here a "trend-turning and new-push-starting" support line.
I always like to analyse first and then take a look at the indicators that I use to see how this would or could work out and if you take a closer look at those the first thing you see is that the RSI is as well following an ascending trend line to which it might come back and from there on continue the push into an overbought region. This would be equivalent to the bounce of one of the intermediate support lines. Looking at Stoch there is still some space for this move.
Nevertheless, the move you want to and I will be putting my money on is RSI retracing down to a strong support at 41 points and with it forming a double bottom, indicating a bounce or stringer movement upwards. This would be equivalent to the retracement to recent 61.8% line and the previous mentioned bounce.
IN NUMBERS -
- BUY 10%@15.5k 90%@14.5k
- SELL 60%@18k 30%@20k leave 10% for above 20k
- SL @13.9k
P.S. we will be covering the correlation between alts an BTC in the next session, so you understand when BTC and alts have a positive or a negative correlation like right now.
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Cheers, Tomas
