Nano / Bitcoin Short-term price analysis
Nano has turned bullish against Bitcoin over the short-term, with the NANO / BTC pair recently advancing to a fresh 2019 trading high.
Price is currently trading close to the former yearly trading high after bulls were unable to sustain the breakout above the January 26th trading high.
The four-hour time frame shows a bullish breakout from a descending triangle pattern has occurred, with the pattern reaching its upside projection.
Pattern Watch
A bullish inverted head and shoulders pattern has started to take shape across the four-hour time frame.
Relative Strength Index
The Relative Strength Index is bullish, although it is starting to correct from overbought conditions.
MACD Indicator
The MACD indicator on the four-hour time frame remains bullish, although the MACD signal line appears overstretched.
Fundamental Analysis
The short term growth follows last week’s announcement that Nano was added as a payment option on Travala.com. Travelers are able to book over 550,000 hotels in 210 countries with NANO, which should positively affect the adoption of cryptocurrency. In addition, Binance has announced that it will open trading for NANO / USDT, which should increase the liquidity of the coin.
Nano / Bitcoin Medium-term price analysis
Nano has turned bullish against Bitcoin over the medium-term, with the Nano / BTC pair moving above its 200-day moving average for the first time since May 2018.
The daily time frame shows that the recent strong advance in the Nano / BTC pair has invalidated a bearish head and shoulders pattern, with the October 18th currently offering the strongest form of near-term resistance on the daily chart.
Technical indicators on the daily time frame are bullish and signalling further gains ahead.
Pattern Watch
Traders should note that the price target of an invalidated inverted head and shoulders is calculated by taking the width of the pattern between the head and the neckline and adding it to the highest point of the right shoulder.
Relative Strength Index
The RSI indicator is bullish, although it is now attempting to correct from extreme overbought conditions.
MACD Indicator
The MACD indicator on the daily time frame has turned bullish and is generating a strong buy signal.
Fundamental Analysis
With the amount of competition in the “payment sector” of the cryptocurrency market, Nano’s medium term prospects highly depend on its team’s ability to increase adoption. By on-boarding new merchants, similar to Travala.com, the team can greatly increase the demand for the coin, and therefore the value of the network.
Conclusion
Nano has an improved outlook against bitcoin over both time horizons, with the NANO / BTC now starting to firm above its key 200-day moving average.
The recent invalidation of the bearish head and shoulders pattern on the daily time frame suggest that the NANO / BTC pair could start to advance towards the October 18th trading high.