|Trading Idea| Siacoin - Bitcoin (SCBTC)

In our first "Trading Idea" post, we would like to share our thoughts on trading Siacoin (SC). For those of you that are not familiar with Siacoin, we believe it is a promising company which enables the sharing of unused storage space on computers worldwide by making use of their dedicated blockchain. To us, the idea and vision behind Siacoin is very solid. We believe in the growing need for smarter and decentralized storage space for future worldwide developments like self-driving cars etc. In this post we will highlight the chart of SC, but the same potential is valid for like-minded coins like STORJ.   

When we take a look at the chart of SC, we consider it a bullish buy opportunity based on the technical analysis backed by its strong fundamentals.   

A few weeks ago, back in May, SC had been showing some upwards movement towards the 100 Satoshi mark. Looking at the current chart on the 2hr timeframe, it would be fair to state that the 100 Satoshi mark could be considered as the pre-breakout "baseline" of SC. During the first half of May, Siacoin managed to break its pattern and reached 180 Satoshi, after which it consolidated to around the 150 Satoshi mark. The second half of May initiated a larger breakout as it climbed through the 200 level, al the way up to reach 840 Satoshi on June 20th. Naturally there have been several retracements along the way, but to us SC has been looking very strong during its overall rise to its all-time high.   

When we draw a fib-retracement from the initial breakout point towards the all-time high of 840 Satoshi, we are able to confirm that the current price of +/- 500 Satoshi would be the 50% retracement, as seen in our following chart: 

Furthermore, when we zoom in on the chart we can see the bearish trend of the past week in more detail. This significant retracement is due to the drop/sell off in BTC, which we have been experiencing past week. At this moment we see the first signs that this bearish trend will be broken, but we expect SC to be testing its longtime support around its current level at least one more time. This longtime support has confluence with the same 50% retracement line as shown in the first chart. Take a look at the zoomed chart below:    

Based on this confluence of the longtime support level, as well as the 50 % fib retracement on the longer timeframe we consider this a bullish buy opportunity. Siacoin with its strong fundamentals will have the capability to reach new highs in the near future.   

Please note that this is our current view based on the technicals of the chart. All depends on the price action of Bitcoin and the outcome of the scaling debate, as Bitcoin will be an important factor for the altcoins in order to further stabilize and reach new highs.