The Golem/Bitcoin pair (GNT/BTC) started its downtrend on May 31, 2018 when it confirmed resistance of 0.000086. This triggered the double top pattern on the daily chart. Those who bought near the resistance level had to cut their losses. This started a bear run that’s still bleeding the market up to this day. The good news is the end of this run appears in sight.
Technical analysis show that Golem/Bitcoin is ripe for a bounce at around 0.0000355 support. We have several reasons to support this view.
First, the pair is oversold in the daily, 4-hourly, 3-hourly, and 2-hourly charts. Plus, it is extremely oversold on the 1-hour chart. Even if bears try to force the issue, it is very likely that they’ll fail because the price will fall to a key support level. That brings us to our second point.
GNT/BTC has a firm support at 0.0000355. Looking at its daily chart, it is also possible that the market may set up a bullish higher low at 0.0000355. There are three trend lines converging at this level. This increases the chance that bulls will show up and protect the price area.
Lastly, GNT/BTC is getting to the narrowest point of a falling wedge. The price contraction mixed with oversold conditions might just be enough to spark a sharp rally.
The strategy is to buy at the current price of 0.00003562. If bulls can preserve the support, they will attract the momentum they need to break out of the falling wedge and climb to our initial target of 0.0000463.
The process may take a month.
Daily Chart of GNT/BTC on Poloniex
As of this writing, the Golem/Bitcoin pair is trading at 0.00003562 on Poloniex.
Summary of Strategy
Buy: Current price of 0.00003562.
Target: 0.0000463
Stop: 0.0000329
