When we take a look at Factom on a fundamental level we see this is a solid company with the goal of creating products to make the world a more transparent and honest place.
They accomplish this by storing company data on their own decentralized blockchain called the Factom network. The data stored becomes immutable when added to this blockchain, this helps reduces audit times and prevents costly disputes. Factom has much more to offer, too much to mention in this post.
If you want to know more about the fundamentals of Factom, here’s a link to their website.
Since we are technical traders for the most part, we will be sharing our technical views on the FCT charts today.
We can see that the price of FCT has exploded since the end of May where the price was 0.00500000 BTC. In less than a month it reached a peak of approx. 0.01450000 BTC on the 19th of June.
We have been in a steady downtrend since then. As you can see in the following chart we are approaching the 61.8% FIB retracement level for the third time since the highs of mid-June. The 61.8% level increases the chances of a trend reversal.
There are two more bullish signals we are seeing if we zoom in a bit further. The first is the triangle we see in following chart. The swings are getting smaller and we see a decrease in volume. This usually means we are poised for a breakout to the upside. The second signal is the double bottom which made its first bottom on the first of July and its second bottom one week later on the 8th of July.
Probably the most important thing about this kind of trade is that we have a truly beautiful risk/reward ratio. This risk/reward ratio is one of the most important factors we take in consideration before entering a trade. In this case we are putting a mental stop loss about 6% beneath our entry point. Take in consideration that we are constantly watching our positions and might alter our positions as Bitcoin might react heavily to a possible outcome of the scaling debate. As most of you know a lot of Alt coins have the tendency to follow the fear or euphoria that might occur when a deal for Bitcoins scaling debate comes in to play.
We are merely posting this trade idea to share our knowledge, this is not a trade signal service. We'd love to hear your thoughts about Factom or our trading in general.
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