BBOD Research: ICON (ICX)
Daily Tech Pick
ICON (ICX) | $2.17 USD | 0.00033171 BTC
Since Bitcoin broke the $7200 major resistance level the market has seen a sharp large volume sell off with many individuals incredibly bearish on the outlook for the coming months. Despite this, as the famous saying goes “the time to buy is when there is blood in the streets”. Moreover, over the past 24-hour period, there have been some signs of a recovery. For instance, on the 1-hour timeframe yesterday evening, we saw a candlestick with a long lower shadow wick accompanied by huge volume, indicating a bullish change in market sentiment. The low here was $6100 and so this has become the new near-term support, a break of this level would negate this theory. Since then, Bitcoin has broken out above the 10 EMA on the 1-hour chart which is now acting as support, with a bullish 10 and 30 EMA crossover imminent. It should be noted that working off smaller time frames is unreliable for longer-term investments, but here we may be seeing early signs of a bullish reversal in the overall trend. A cross of the 10 and 30 EMA on the 4-hour chart or finishing today with a bullish engulfing daily candle with strong volume would be further confirmation. Lack of this occurring may just indicate a short-term bounce for now before we find a new low. Thus, any gains should be effectively risk managed with tight stop losses until we see final confirmation. The alts never tend to wait for Bitcoin to confirm before they proceed higher, however, and so many names have seen strong moves from the near-term $6100 Bitcoin low. Names first out of the gate often tend to lead the way in the following alt season. One such coin has been ICON (ICX). On the daily, a bullish engulfing candle with significantly large volume can be seen as of yesterday coinciding with the lowest RSI we have seen since March, indicating extremely oversold conditions. It appears that we are now beginning to form a large double bottom pattern with a breakout point of 0.00045 Satoshis, if true this would signify a 38% positive move relative to Bitcoin. On the 4-hour chart ICX is now a little extended and so for those who believe in the project long-term, an early entry would be on a pullback to the 10 EMA followed by a large volume bounce. For the more cautious investor, a cross of the 10 EMA and 30 on the daily would confirm a longer-term uptrend, albeit missing some of the rally. After the 0.00045 Satoshi resistance level the next barrier to watch is 0.00055, 22% higher. With a lot of hype surrounding the South-Korean platform, a huge market in cryptocurrency space, ICON is certainly one to keep an eye on if Bitcoin permits in the coming days.
ICX/BTC daily chart
Source: Tradingview
