The Golem/Bitcoin pair (GNT/BTC) started its uptrend on December 18, 2017 when it reclaimed 0.000025 and triggered the Wyckoff spring pattern. The false breakdown ignited a run that saw the pair rally to as high as 0.00008889 on January 2, 2018. In less than three weeks, the market grew by over 255%.
As GNT/BTC managed to climb the top end of the range and achieve the target of the spring pattern, trend followers started to take profits. The increased selling activity drove the pair down to 0.00005263 on January 6. Bulls entered the market to bottom pick and helped push the price up to 0.00007925 on January 8.
With a lower high in place, the pair became increasingly bearish. GNT/BTC posted consecutive lower highs and lower lows until it found the bottom at 0.00002479 on March 18. The pair has been rallying since. It actually looks ready to start a big bull run.
Technical analysis show that Golem/Bitcoin is threatening to take out resistance of 0.00007 and trigger the large double bottom reversal structure on the daily chart. To complete the breakout, bulls need to generate volume of over six million Golem units. Those who bought the bottom are very likely to take profits at the resistance. The market needs buyers to absorb the selling pressure.
The strategy is to buy the breakout at 0.00007 as long as the market meets the prescribed volume. If bulls take out the resistance, the market will likely consolidate for some time before exploding to our target of 0.000105.
The process may take more than month.
Daily Chart of GNT/BTC on Poloniex
As of this writing, the Golem/Bitcoin pair is trading at 0.00006476 on Poloniex.
Summary of Strategy
Buy: Breakout at 0.00007 as long as the market prints six million units of Golem.
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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