STEEM Price Analysis – May 20, 2017
The STEEM-BTC price broke out of its range in the last 24 hours. A new range may be forming.
For the past ten days, the STEEM-Bitcoin price had been in a range between ~40K and ~58K satoshis. An ascending triangle pattern had been forming over the past few days, with a strong uptrend line starting at 43K satoshis. On the fourth attempt to break out in as many days, the STEEM-BTC price pierced resistance and made a run to ~65K satoshis before temproarily retreating back to ~59K.
On the chart below, we can see the previous line of resistance around 58K satoshis and the ascending triangle pattern on the right.
Zooming in on the 24-hour chart below, we can see the breakout that occurred right around 59K. It then ran pretty quickly to 65K, as there was essentially no resistance between those prices. The price retreated back to 59K, then rose again to ~67K satoshis before falling and rising once again. If the price does not fall below 59K again, we may be looking at a new trading range for the short-term between 59K (red line) and 65K (blue line).
It should be noted that these prices can quickly break higher or lower, as there isn't much historical support/resistance at these levels.
Possible retracements for this most recent move upward will ultimately fall back on previous support/resistance. These targets are mostly confirmed by the Fibonacci bands. The first support line would fall around 56-57K satoshis. A 50% retracement would be around 53-54K and the 23.6% retracement would bring prices back to fairly strong support at 46-47K. If there was a full retracement, which I would not expect, the STEEM-BTC price would fall back to ~40K.
If prices should break out instead of break down, we could see 70K satoshis very quickly and possibly a re-test of the recent highs in the upper 70s. This would be an extremely bullish move considering that BTC prices continue to reach all-time highs.
The STEEM-U.S. Dollar price has already reached its recent high. It is currently trading above $1.25 at the time of posting this analysis and has similar signs of strength as the STEEM-BTC price, which is expected.
What can we expect for STEEM-BTC prices?
Bitcoin continues to move upward, which can ultimately put a lot of pressure on the alt-coin market. If the BTC price continues to rise, alt-coins could drop - relative to Bitcoin. It's important to make a distinction between BTC trading pairs and the actual price in Dollars or other currencies. Even if the STEEM-BTC price falls, the STEEM-U.S. Dollar price can rise. If you're trading on exchanges like Bittrex or Poloniex, your trades against BTC are only gains or losses against Bitcoin. Having an accumulation strategy for either STEEM or BTC (or both) will determine whether or not you're gaining or losing at any given time.
That being said, STEEM is making some headway against BTC even with Bitcoin rising to new highs. To me, this is a strong bullish indicator for STEEM in the near- to mid-term. The trend continues be up for STEEM prices, so any trading strategies that you might have will need to take this very much into consideration. The stronger trend is usually the prevailing trend in a given market. There may be short-term pull-backs, but until the long-term uptrend is reversed, these pull-backs will mostly be relatively small (and healthy) corrections.
Watch for another possible upside breakout around 67K satoshis and be aware that a correction can still occur if the price falls back under 59K. As long as those prices hold, this range can be traded for some very good profits, up to ~13.5%.
If you're trading, always remember:
Never invest or trade what you cannot afford to lose and put tight stop-losses in when prices creep lower towards the support lines.
As always, if you have any critiques or comments about my non-professional analysis, please let me know. If you decide to trade this market, good luck to you!
Disclaimer: I am not a professional adviser and this info should not be used for trading. These are only my interpretations and opinions, and while I would be flattered that you think so highly of my fairly basic analysis, it would not be prudent to use this for transacting/trading with real money.
*Charts are from Poloniex and Coinmarketcap.com. Analysis is current as of approximately 2:00pm EST, May 20, 2017.
Some of my trades over the last few days...
Good trade. ~15% returns, sometimes more than once a day are always a solid transaction. Wish Inhad more time to play the short term day trades and ride the waves buying and selling st right time/price. I think if BTC keeps going up it will have a moderate affect on STEEM. I think STEEMIT as a platform and especially being able to confirm transactions faster through the blockchain is a big deal that isn't getting mainstream attention. Personally Inthink that can make BTC overall limited and with the changes in Social Media, especially monetization issues on YouTube and censorship on YT and Facebook people will start looking for other platforms and I think STEEMIT is a great, great, GREAT platform long and medium term. So get that STEEM before it jumps up to $10...or $50. Followed, would appreciate a FOLLOW too but no pressure of course, just trying to hone my trading and posting skills. Great post and information!
Only heard about steem a couple of weeks ago. I signed up and it really looks like it can blow other social media platforms out of the water. What price can you see it reach over the next year or so.
I think year over year STEEM will probably go to between $5-$10 per STEEM. This is because I have seen it go from below $0.15 to close to $1 withij the past six months. Honestly I say $5-$10 to be conservative but it could also be $1 and yet if the features and userbase grows exponentially than it could easily be a lot more than that due to the transaction speeds and ability to make money blogging.
Brilliant thanks a million for your insights.
BTW Upvoted and Followed. Do the same and support your fellow STEEMIANS ;)
For real. I think if PepeCoin can do it than STEEM can certainly make waves in the currency landscape and not just the crypto landscape. I see no reason why STEEM can't be more valuable than Bitcoin in the future. Much more meat in this platform. FOLLOWED
I think BTC is in a "seeking for safe heaven bubble" right and will correct,
And until the majority of the population understand that all mocking of gold and silver during the last years is to scare them away from PM,
Bitcoin will continue to be THE safe heaven away from all centralbanks FIAT currency that is losing its value.. i.e being exposed. Imho
Yeah no you are definitely correct. I recently did a Hail Mary I put my remaining 2.4 BTC into Ripple and cashed out 24 hours later for 3.15 BTC. Ripples a great way to make quick profits because of its volatility but BTC is tried and trusted and it's not going anywhere. I actually fumbled the deal too. If I had traded 40 mins earlier I could have walked away with 3.6 BTC! Ripple is a great way to make quick profits but definitely not a good long term investment. The current Ripple bubble was created by the company locking up something like 90-95billion of the XRP tokens (don't quote me on the numbers but it's a lot). By creating artificial scarcity the company has managed to boost the value of the XRP in circulation. But at any instant the company could wipe by releasing all of their locked up XRP and using it to buy BTC and other crypto. Thus destroying the value of the XRP in an instant and boosting what ever tokens they buy into. The name of the game with Ripple is PUMP AND DUMP! XRP trades primarily in Japan and South Korea so a great time to buy is in the off hours when the markets are closed over there and than try to sell for a good price when the markets open and the price usually spikes. Good luck in your trades and always remember no risks NO PROFITS!
With all of the day trading, how do you account for tax gains?
Yeah I mean any "decentralized cryptocurrency" that has one major owner is basically a fiat currency in and of itself. It has all the same risks. BTC and absolutely every other currency will always follow the same rule. How much money do people have invested in having it versus a more stable currency and does it have unique value. I guess thats two rules. But international I think is the only way BTC is holding fown any gains especially beyond $1,000. I think fair value is $500.
Great analysis thanks! I will keep an eye on the prices you mentioned as support and resistance
My gut is telling me to hold back at 60k. My happy trigger finger on the mouse disagrees. Maybe I should just go outside.
Just don't go all in at 60 and you should be OK.
Thank you for the great piece. So does this mean we're basically waiting for BTC to lose it's current momentum and then STEEM will have a big rush?
Not necessarily. The STEEM-BTC price has been favorable to STEEM as the price of Bitcoin rises. Any gain on BTC is great in a market where the BTC price is increasing.
But just because the BTC price falls, it doesn't mean that the STEEM price will gain on it. In fact, I have witnessed the opposite on many occasions.
STEEM is just BTC with an official community and the ability to mind it instead of mine it. A better formula in my opinion especially in a time of content explosion. We need to hire someone to make STEEMIT apps for everything. There is no limit.
Resteemed Great article.
Steem seems to heading straight to $5 in a vertical rise.
Nothing is ever vertical but I will always be ok with a 15% incline delta.
☺
The Market Cap Is so massive I don't think there is a direct link between Btc and altcoins anymore. BTC Dominance is dropping a % point a day. This alone thows any speculation off the table.
to the moon Steem! I need a Lambo
Just buy Physical Silver instead. A Lambo loses a lot of value after you buy it. Silver will likely go up and will never not be Silver. Old Silver is still Silver. An old lambo is just an expensive insurance payment haha. But for real TO THE MOON!
Prince steem ok 😘😘
Very cool analysis