BBOD Research: Decred (DCR)

Technical Pick: Decred (DRC)

Bitcoin has experienced major market capitulation to the downside over the weekend. Since the break of the $7200 major support level, formed by the equilibrium pattern which has been in play since January, sell-side volume has been extreme. In order to maintain a longer-term bullish outlook, it is essential that we hold support above the recent lows of April, around the $6500 area, this would validate the higher low long-term theory. A break of this level would be significant and indicate a long-term bearish trend to follow. Today, Bitcoin has been consolidating the sharp move to the downside in a tight range, it remains to be seen whether this will hold. Thus, the following days will be key in determining the market perspective for the coming weeks. Such market conditions are incredibly difficult to trade and so any investments should be taken with extreme caution. Contradictory, cryptocurrencies that hold up well under such strain indicate that once the market favours the bulls upside potential is extremely likely. One such altcoin to achieve this has been Decred. Since September last year DCR has been forming an Adam and Eve Cup and Handle pattern on the daily time frame, which broke out recently around the 0.01 Satoshi level. Buy-side volume has remained consistently higher than sell-side volume during this period, with support being found regularly on the 10 EMA, both bullish signals. More recently, DCR has been trending to the upside consistently, whilst many other names have take huge loses in the past few weeks. Such strength in a weak market suggests that further upside is likely when market conditions become favourable. The next level of resistance is the 0.0165 Satoshi level, formed earlier last year and confirmed with a recent exuberant spike to the upside. For those who believe in the project long-term, a retracement to the 10 EMA followed by further confirmation of the continuing upside trend would signify a good buy opportunity. In the current market, however, being cautious cannot be understated, and so sitting on the sidelines until conditions favour the bulls would not be a bad play. Alternatively, a break of the 0.0165 prior resistance level would be the next sensible entry point. From there, all-time highs will soon be met. In this market, Decred technicals are as good as it gets. Be sure to put this on your watchlist.