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The Wanchain/Bitcoin (WAN/BTC) pair went as low as 0.0000971 on August 14, 2018. At that point, the altcoin was down by over 90% from this year’s high of 0.0010753 on May 3.

While this may look scary to many retail investors, it’s actually a good idea to be a contrarian. WAN/BTC has lost so much over a three-month period that bears should most likely be exhausted. That’s what we’re seeing right now.

Technical analysis shows that WAN/BTC has breached resistance of 0.000145 on August 25. This triggered the breakout from the large falling wedge on the daily chart. It appears that the fall to 0.0000971 attracted bottom pickers and bargain hunters. This helped the market gather the volume and the momentum needed to finally reverse its trend.

Speaking of volume, WAN/BTC registered extremely high volume a day after the breakout. The pair has not reached that volume level on the daily chart since April 13, 2018. This tells us that bullish sentiment is back. Participants are buying now as they expect significant profits in the short and long term.

Lastly, Wanchain/Bitcoin has also broken out of its RSI resistance of 44. This level has kept the market bearish since May. The RSI surge is another indication that momentum favors the bulls.

The strategy is to buy as close to 0.000145 as possible. Wanchain/Bitcoin is creating a shooting star candle suggesting that bottom pickers are taking profits. This should give you a chance to buy the dip.

As long as the market is above 0.000145, WAN/BTC is likely to have the momentum needed to climb to our target of 0.0003.

The process may take a month.

Daily Chart of Wanchain/Bitcoin on Binance

As of this writing, the Wanchain/Bitcoin pair is trading at 0.0001855 on Binance.

Summary of Strategy

Buy: As close to 0.000145 as possible.

Target: 0.0003

Stop: 0.000135

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.