Coming in hot on BiKi Exchange is none other than HY/USDT, having just been crowned the Startup of the Year back in 2019, in the Information Technology Products category. For those who do know, Hybrix is a multi-blockchain platform that allows users to store and manage their cryptocurrencies in a decentralized way and ensures privacy without storing any private data.
Why you should be mindful of the ICO/Exchange-Listed price!
One thing I have learnt from my years of experience in the Crypto space, is to pay close attention to what the token’s current trading price is as compared to its ICO price(or the price at which it is listed at on a new Exchange). There is often the saying of:
“Buy Low, Sell High”
That may make sense in a traditional stock market where you can easily calculate a stock’s intrinsic value, and determine if it is under- or over-valued. But in the land of digital assets, the truth is often quite the opposite…
Unfortunately, the mass majority of investors who snaps up the tokens at launch are merely, Speculators. Speculators do not actually believe in the functionalities/future applications of the project, but more so in hope to ‘get rich quick’ when the price skyrockets to become the ‘next Bitcoin’.
*To The Moon*
So what happens when the token ends up trading below its ICO/Exchange-Listed price for a prolonged period of time? Fear starts to set in as the speculators are now ‘trapped buyers’, and they start to develop the mindset that “I need to get out of this position ASAP with zero or minimal losses!” This creates multiple huge sell walls(sell limits) that hovers about the ICO/Exchange-Listed price, creating what retailers would call a resistance zone.
This zone will be hard to overcome unless a Whale comes along and decides to pump that particular token, by which he would need significant capital to overcome it.
At the time of writing at 12:40(GMT+8), the current price of HY/USDT is trading at 0.9850, which is below its Exchange-Listed price of 1.8000 on BiKi Exchange.
Now that we know what’s the listing price of HY/USDT on BiKi, we can mark that level and always be aware of where that level is.
- As we can see, after a prolonged period of trading below the listing price, the speculators who wants to neutralise their losing positions at breakeven will place their sell limit order right around 1.8000, resulting in that major rejection off that level.
- Price was in a nice bullish trend supported by the ascending trendline drawn, until it was rejected off at the crucial level.
- Ascending trendline was then broken, and price made a lower low, signaling to us that the bullish trend may have ended.
- 17&50EMAs are still in the bullish territory.
- 17&50 EMA have made a ‘golden cross‘, indicating a bearish trend on lower timeframe.
- Drawing the Support and Resistance zones, we notice that the current price is at an interesting level, trapped between two significant zones.
With almost all the indications pointing downwards, it would be hard to form a bullish case for HY/USDT. A bullish scenario is possible if the price breaks upwards from the upper zone and manages to close beyond it, but the upside remains limited as long as price trades below 1.8000.
Finding Take-Profit Target on Daily
Using Fibonacci extension to find our target(which is what we always use), we find that from looking left, the -27.2 extension level coincides beautifully with a significance level at 0.5055, having previously acted as both a Support and Resistance(now Support).
What I will be expecting to see on H4:
Entry level will actually be right around the current level, with take-profit level at 0.5055 as mentioned. Do implement the necessary risk-management, and remember that here at BiKinSights, we only take trades with a minimum risk-reward ration of 1:3.
Place your orders here now before it’s too late!: https://bit.ly/DEXTUSDT_SURGE
Disclaimer: The above does not constitute as investment advice. Do note that trading cryptocurrencies (or any other financial market) involves substantial risk, and there will be a potential for loss. Your trading results may vary. Please practice the proper risk management to avoid risks of approaching account zeroing and liquidation.