Siacoin/Bitcoin (SC/BTC) looked promising in April 26, 2018 as it attempted to take out resistance of 0.000003 and kickstart a new bull run. The breakout looked good on paper. Volume skyrocketed, which sent the market to as high as 0.00000425 on the same day. Unfortunately for buyers above the resistance, the price action was used to dump positions.
The heavy selling pushed the market below 0.000003 on April 29. As often is the case, the false breakout sent the market down to the bottom end of the range. This gives us an opportunity to buy the bottom.
Technical analysis show that SC/BTC is respecting firm support of 0.0000012. We have technical indicators to support our view.
First, we can see that the RSI is in extreme oversold territory. However, it is bouncing from long-term support of 22. In other words, the market is likely not to go weaker at this point. This sentiment is shared by the stochastics. SC/BTC is bouncing from long-term support of 4.30, which is a level that has never been breached.
In addition, the small bounce that we saw recently due to oversold conditions should give SC/BTC the chance to break out from the falling wedge. This gives people more reason to be bullish about the pair as a double bottom pattern becomes possible.
The strategy is to buy as close to 0.0000012 as possible. If bulls hold on, there is likely to be a quick rally to our initial target of 0.0000016. Take that out and the next target is 0.0000024.
The process may take less than a month.
Daily Chart of Siacoin/Bitcoin on Bittrex
As of this writing, the SC/BTC pair is trading at 0.00000128 on Bittrex.
Summary of Strategy
Buy: As close to 0.0000012 as possible.
Target: 0.0000016 and then 0.0000024.
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.
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