Trade Recommendation: Litecoin | Hacked: Hacking Finance

The Syscoin/Bitcoin pair (SYS/BTC) started its bull run in April 2017 when it breached resistance of 0.00002. The breakout triggered the long cup and handle structure on the weekly chart, which propelled the pair to as high as 0.00010278 in June 2017. In a couple of months, the pair grew by over 413%.

At this point, however, SYS/BTC was in extreme overbought territory. Those who bought the breakout and followed the trend started to dump positions. The pair dropped to 0.00002276 in August 2017 before bulls bought the dip. The bottom fishing inspired a rally that saw the market climb to as high as 0.000083 in September 2017.

Unfortunately for buyers at this price point, the lower high killed the market’s bullish momentum. Participants went into capital preservation mode, which significantly increased selling pressure. The market responded by creating a series of lower highs and lower lows until it bottomed out at 0.0000173 in December 2017. The good news is the market has been rallying and it looks ready to spark another bull run.

Technical analysis show that Syscoin/Bitcoin is positioning to take out resistance of 0.000066 and trigger the cup and handle structure on the weekly chart. This comes after bulls created a bullish higher low setup of 0.000037 in March 2018.

To complete the breakout, bulls must generate at least 4.2 million units of Syscoin in the daily chart. Those who bought the higher low are likely to take profits at the resistance. The pair needs buyers to offset the increased selling activity.

The strategy is to buy the breakout at 0.000066 after the required volume is met. If bulls take out the resistance, they will attract momentum traders and trend followers to help push the market to our target of 0.0001.

The process may take more than a month.

Weekly Chart of SYS/BTC on Poloniex

As of this writing, the Syscoin/Bitcoin pair is trading at 0.00005543 on Poloniex.

Summary of Strategy

Buy: Breakout at 0.000066 with volume of 4.2 million units of Syscoin.

Target: 0.0001

Stop: 0.0000616 after the breakout.

 

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.

Crypto Destroyer

Be the first to comment

Leave a Reply

Your email address will not be published.


*