NEO/BTC 3-Day Chart, Potential 115% Gain (Positional Trade)

NEOBTC PA (Price Action) of this pair, and the crypto markets in general (especially altcoins), is currently quite bullish and we may have found a potential bottom with what looks to be a capitulatory Volume spike. NEO/BTC seems primed to break to the upside after consolidating for a little over a month on top of the Demand Zone @ 0.002650, which is a D3 OB (3-Day Order Block). There is now a RSI Bullish Divergence that has confirmed on the D3 Chart. It also seems to be forming the first HL (Higher Low) since the commencement of this bear market trend earlier this year.

Here are some possibilities of where I think price may go next:

Bull: (bias)
- Break up and test the September High @ 0.003410, which is also confluent with the 23.6% Fib (Fibonacci Level)
- If this level is broken, the next key Resistance is the August High @ 0.003990, which is also confluent with the 38.2% Fib
- This would be my first TP (Take-Profit) target, where I typically like to scale out about 15% of the position making it essentially risk free
- The next TP would be at the July Open @ 0.004817, which is confluent with the 61.8% Fib, where I would be looking to take off another 35% of the position
- The final TP would be the range between the January Low @ 0.005260 and just under the Equilibrium of the Supply Zone @ 0.005695, which is confluent with both the 78.6% and 88.6% Fibs

Bear:
- Break below the consolidation Support around 0.002500 and then goes to the downside to the Demand Zone Equilibrium around 0.002300 before bouncing up from there
- If price does indeed break Support, keep in mind that it could find some Resistance around 0.002500, and potentially even test the bottom of the Demand Zone around 0.00200
- This trade would be invalidated if price were to break the December 2017 Low of 0.001859
- If this were to happen, I would need to reevaluate things and wait for a clean setup as the only other Support on this chart is the November 2017 Low @ 0.000050, and I am not one for knife-catching

Something to keep in mind is that NEO is strongly correlated with Bitcoin (0.79), so if it were to break the bottom of it's current trading range ($6065), we may see NEO and other alts form a LL (Lower Low) and set new yearly lows. Based on current PA, this scenario seems unlikely but is something to be cognizant of.

Where do YOU think price is heading? Leave a comment, preferably with a chart, and let's discuss!

Comment:

Correction: Text re "Take-Profit" should read "Supply Zone", not Demand Zone.

Comment:

Pulling the plug on this long for a small profit, Bitcoin is looking fairly weak here and the possibility of retesting the $6k level seems to be quite high.

Happy to jump back in this trade if Bitcoin bounces.

Trade active:

Jumped back into this trade, the same setup as before, let's hope Bitcoin can start moving up again.