Wednesday does not start well for the crypto market. Almost all major instruments are going south. One of the biggest losers among the top cryptos is Siacoin, which is down almost 5%. Situation here is negative and we are very close to get a major sell signal. Previously we wrote a piece about the Siacoin on the 6th of September. We were bearish too:
„Today, the price is breaking the lower line of the flag and the mid-term down trendline (black). Both of those actions are definitely negative. Sell signal is on, which means that we should seen the new lows soon. „
The price was going down till the 12th of September. Then the correction started and guess what, it was another (third in a row) flag. Previous two times, flag ended with a bearish breakout. Now, we are very close to see that happening again. Actually, as we speak, as the price is testing the lower line of the flag now. Seller can use this momentum together with the negative sentiment towards the whole crypto market. Price closing a day below the lower black line will be a legitimate sell signal and chances for that are quite high. Buy signal will be triggered, when the price will break the yellow horizontal resistance but this is less likely to happen.