The Everex/Bitcoin (EVX/BTC) pair has looked bearish since January 19, 2018 when it generated a lower high of 0.00045. From that point, the pair has been generating a series of lower highs and lower lows. It initially bounced at the 38.2% Fibonacci level on February 10 only to be repelled by bears at the 61.8% level on the same day. Bulls mounted another rally the next day but they were stopped at the 50% level.
There were multiple rallies to take back the 50% Fibonacci level but bears preserved the resistance. Eventually, EVX/BTC broke the 38.2% Fibonacci support on March 6 and that’s when the pair unravelled.
It took over two months for the pair to find the bottom at 0.00011101 on May 25. Interestingly, the market bounced at the 23.6% Fibonacci area. This gives us the confidence to trade the range.
Technical analysis reveal that Everex/Bitcoin appears to be carving a bottom at 0.000138 support. We have several reasons that affirm this view.
First, we can see a long bullish divergence on the RSI. This tells us that a reversal is in sight. Second, the 4-day, 9-day, and 21-day moving averages are converging at today’s daily candle and are reversing their direction. This suggests a potential move up. Also, the daily volume is really low. This indicates that almost no one is interested to sell at this level.
The strategy is to buy as close to 0.000138 as possible. As long as bulls stay above this level, they are likely to attract the momentum they need to rally to our target of 0.0002.
The process may take less than a month.
Daily Chart of Everex/Bitcoin on Binance
As of this writing, the Everex/Bitcoin pair is trading at 0.00013955 on Binance.
Summary of Strategy
Buy: As close to 0.000138 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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