Trade Recommendation: Syscoin

The Syscoin/Bitcoin pair started its bull run on when it broke out of 0.000048 resistance on December 24, 2017. Its strong momentum enabled the market to temporarily pierce resistance at 0.000068 on January 13, 2018. The rally gave breakout buyers a growth of over 40% in their investments in three weeks. To lock profits, breakout players started to dump their positions.

As profit taking commenced, the market went as low as 0.000047 on January 16. However, the market immediately bounced, and once again knocked on 0.000068 resistance on January 22. Bears defended that level and sent the market down to 0.000050001 on February 2. The pair is currently consolidating at this level, which may be a good time for you to place buy orders.    

Technical analysis reveal that the Syscoin/Bitcoin pair is creating a bullish continuation pattern in the weekly chart. The range that started between 0.000048 and 0.000068 is narrowing every week. As the range narrows, the bid and ask prices will eventually meet. When that happens, price will most likely skyrocket as the market is currently bullish.

The strategy is to buy as close to 0.000048 as possible to limit your costs. Once consolidation is over, the market will resume its ascent to our target at 0.0001. The entire process can take less than three months.

Weekly Chart of Syscoin/Bitcoin on Poloniex

As of this writing, the Syscoin/Bitcoin pair is trading at 0.00005377 on Poloniex.

 

 

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.