The SingularityNET/Bitcoin (AGI/BTC) pair breached resistance of 1,000 satoshis on November 4, 2018. This triggered the breakout from the rounding bottom reversal pattern on the 4-hour chart. The breakout appears valid as AGI followed-through with a strong rally to 1,388 satoshis on the next day.
At that point, AGI/BTC was flashing sell signals. The 4H RSI was in extreme overbought territory. On top of that, the 4H candle printed a long wick on top of its body. These were clues that those who bought the bottom and the breakout were taking profits.
With sellers overrunning buyers, AGI/BTC pulled back. This pullback has sent the market back down to the breakout. The good news is it looks like we can buy this dip.
Technical analysis shows that AGI/BTC is retesting support of 1,000 satoshis. So far, the support is holding and we believe that it will continue to do so. We have good reasons to back up this view.
First, we can see that the market is creating a bullish pennant with the apex around 1,000 satoshis. The price compression at this level favors the bulls. This is now a buy zone as those who missed the breakout will likely place bids at 1,000 satoshis.
In addition, the 100-day and 200-day moving averages (MAs) are crawling under the 4H candles. These MAs will act as additional support that will help lift the market once consolidation is over.
Lastly, volume has been significantly declining. If bears have any chance of breaching the breakout, they’ll need volume so that supply can overcome demand. We’re not seeing any signs of that so far.
The strategy is to buy the dip as close to 1,000 satoshis as possible. As long as bulls preserve this support,