2 Month Downtrend
After 3 months (March-June) of chop, WTC/BTC has now been in a 2 month downtrend.
Quick Falling Wedge Play
This downwards channel has had one previous falling wedge pattern, with a quick breakout resulting in ~25% profit.
We are now at the convergence point of another falling wedge pattern and we see an opportunity to buy here at the support and sell in a few days for a potential ~20% or so profit.
Positives:
Uncertainty Leading up to August 16th
However this is still a high risk play, especially because Waltonchain announced on their Telegram AMA that on August 16th they are airdropping WTC tokens to WTCT miners. This could mean that once they receive these free tokens they will dump to recoup their mining costs. I have seen angry posts about this on Reddit and Telegram so it's possible that leading up to this people could dump out of frustration/distrust, invalidating our falling wedge pattern.
Strategy:
After 3 months (March-June) of chop, WTC/BTC has now been in a 2 month downtrend.
Quick Falling Wedge Play
This downwards channel has had one previous falling wedge pattern, with a quick breakout resulting in ~25% profit.
We are now at the convergence point of another falling wedge pattern and we see an opportunity to buy here at the support and sell in a few days for a potential ~20% or so profit.
Positives:
- Price at base/climax of falling wedge
- RSI and Stoch RSI are oversold on the daily
- Volume seems to be picking up since we started the downtrend
- Possible bullish divergence on the Stoch RSI
Uncertainty Leading up to August 16th
However this is still a high risk play, especially because Waltonchain announced on their Telegram AMA that on August 16th they are airdropping WTC tokens to WTCT miners. This could mean that once they receive these free tokens they will dump to recoup their mining costs. I have seen angry posts about this on Reddit and Telegram so it's possible that leading up to this people could dump out of frustration/distrust, invalidating our falling wedge pattern.
Strategy:
- Set buy at 0.000477
- Consider buying some now or if it does break above 0.00052 resistance
- Stop at 0.00046
- Sell half at 0.00058 and possibly wait to see if it breaks above the resistance
Comment:
The Bitcoin ETF delay announcement caused the market to dump. WTC dipped a bit below our falling wedge support line and bounced back up and is hovering at support. I entered there at 0.000464 with a stop loss set at 0.000445
Trade active:
Sold half at the SL of 0.000445
Price hasn't bounced from the climax of the falling wedge but is hugging the support line of this 3-month downward channel. Might be a good idea to buy more now in the 0.00041 or 0.0004 range, and sell when it bounces up towards the middle of the channel. Definitely a risky move though, especially with the Aug. 16th airdrop coming up.
Price hasn't bounced from the climax of the falling wedge but is hugging the support line of this 3-month downward channel. Might be a good idea to buy more now in the 0.00041 or 0.0004 range, and sell when it bounces up towards the middle of the channel. Definitely a risky move though, especially with the Aug. 16th airdrop coming up.