(TRX/BTC) hit its mark on April 24 when the market reached 0.000008.
While we were expecting the pair to range trade, it overshot our target and climbed to 0.00001 resistance on April 30. As 0.00001 is also the 50% Fibonacci level, this is where bottom pickers started to take profits. The selling pressure drove the pair down to 0.00000721 on May 12. Coincidentally, this price point is also the 38.2% Fibonacci level.
What’s interesting about this pullback is that the volume has been anemic. This tells us that many of those who bought at 0.000004 are holding their positions. This is bullish for the pair as reluctance to sell constricts market supply. Under these conditions, we can bottom pick TRX/BTC.
Technical analysis show that TRON/Bitcoin is creating a cup and handle reversal pattern. This comes after the pair posted a higher low setup at the 38.2% Fibonacci level. The shallow correction from the rally suggests that participants are buying on dips. That’s what we’ll do as well.
The strategy is to buy as close to 0.0000076 as possible. As long as bulls hold the higher low, they have all the momentum they need to take out resistance of 0.00001 and ignite an uptrend. This may take us to our target of 0.000016.
The process can take less than a month.
Daily Chart of TRON/Bitcoin on Binance
As of this writing, the TRON/Bitcoin pair is trading at 0.0000082 on Binance.
