Trade Recommendation: Siacoin
The Siacoin/Bitcoin (SC/BTC) pair bounced off lows of 0.00000069 on August 14, 2018. At that point, the market was down by 85.5% since its 2018 high of 0.00000476. It looks like SC/BTC was on the verge of total collapse, but bottom pickers and bargain hunters came to the rescue. They lifted the market and brought it back to life.
Technical analysis show that SC/BTC has breached resistance of 0.00000095 on September 1. This triggered the large symmetrical triangle on the weekly chart. On the day of the breakout, the pair generated volume that’s over 400% of its daily average. This shows that those who are buying the market are buying in bulk. And for very good reason.
Looking at the weekly chart, it appears that the market has always rallied after touching its uptrend support. This has happened twice already so there’s a very good chance that it will happen again this time around.
The strategy is to buy as close to 0.00000095 as possible. If the market manages to stay above this level, SC/BTC will likely attract the momentum needed to climb to our target of 0.000002.
The process may take less than a month.
Weekly Chart of Siacoin/Bitcoin on Poloniex
As of this writing, the Siacoin/Bitcoin pair is trading at 0.00000099 on Poloniex.
Summary of Strategy
Buy: As close to 0.00000095 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.