MIOTA (IOTA/BTC) is giving us bullish price action. While the market is still trading sideways, its recent price movement tells us that it might be ready to trend higher.
MIOTA dropped to as low as 0.000062 on November 20, 2018. At that point, we weren’t sure that the bottom was in. We waited for a retest to see whether the low would hold. Fortunately, bulls defended 0.000062 on December 11, 2018.
With a durable yearly low in place, the market rallied to as high as 0.000101 on January 3, 2019. Although the rally faded, what happened next piqued our interest.
Technical analysis shows that IOTA/BTC is respecting the range midpoint of 0.00007904. Interestingly, the successful defense of the range midpoint happened when the 50-day moving average and the 100-day moving average crawled just below that level. These moving averages continue to act as supports to help keep the price above 0.00007904.
Also, the market’s ability to stay above the range midpoint is bullish. This allows the market to flip 0.00007904 resistance into support. More importantly, it suggests that participants are ready to buy the dip. They are no longer waiting for the market to revisit 2018 lows. With this price action, a possible inverse head and shoulders reversal pattern is now in play.
The strategy is to buy on dips as close to 0.00007904 as possible. As long as bulls hold this support, they will likely ignite a rally to the range high of 0.0000964. Take that out and the next target is 0.0001136.
The process may take less than a month.
Daily Chart of MIOTA/Bitcoin on Binance
As of this writing, the MIOTA/Bitcoin pair is trading at 0.00008442 on Binance.