After creating an all-time high price of 0.00000838 Bitcoin on June 20 at Poloniex, Siacoin’s bullish momentum became questionable. On that day, the market went to as low as 0.00000666 which generated a large spinning top candle signalling indecision. In the next few days, Siacoin struggled to close above 0.00000750, and that was enough for bears to turn the tide, and send the market plunging. The cryptocurrency lost 94.63% of its value when it tumbled to a low of 0.00000045 on November 8. It consolidated at that level until December 20 when the market breached initial resistance of 0.000001.
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Technical analysis show that Siacoin has created a bullish reversal pattern on the daily chart that relies on the breach of resistance at 0.000002 Bitcoin. While the market was able to go above that level on December 24 with above average volume, it has taken a slight dip as investors who bought at 0.000001 take profits. The pullback, however, is healthy as it gives the market a fresh batch of investors who would most likely hold on their positions.
The strategy is to buy as close to 0.00000155 support as possible. Once the market goes above 0.000002 again, it will probably turn that resistance level into a new support to get to our target of 0.00000355.
Daily Chart of Siacoin on Poloniex
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As of this writing, the Siacoin/Bitcoin pair is trading at 0.00000183 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.
