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.

Target: 0.000002

Stop: 0.00000086

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.