Blockchain stocks went through a couple of sharp ups and downs in the last 12 months. We identified Blockchain as a top tech investing trend of 2017 and 2018 several months ago.
BTL Group as been identified as one of the favorite stocks by InvestingHaven’s research team. BTL is working on a blockchain platform called Interbit which should enable major features for the energy and finance industry.
Interestingly, BTL Group crashed a month ago. We identified a potential support level in this article How Low Will BTL Group’s Stock Price Fall. Just a little bit later we came out with a forecast of BTL Group’s Explosive Rally which also materialized.
BTL fell to right below $3 and rallied to $7. Some investors sold their shares, some did not. We called a long term price forecast of $9, and we still hold that forecast.
The million dollar question is: how fall will BTL Group fall in the ongoing correction?
The most obvious support level is $4. The chart makes the point, no additional comment required, the pattern says it all. Note how $4 is the intersection of the rising (white) support and horizontal (purple) support lines.
There is one pitfall which should be noted. Blockchain stocks are strongly correlated with cryptocurrencies. In case the ongoing correction in cryptocurrencies continues, and becomes a fatal crash, which we do not expect by the way, blockchain stocks will continue to fall. In case cryptocurrencies stabilize around current price levels, we see an interesting entry point to buy BTL Group at $4.
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