Hello Steemians, I kind of feel like the bearer of bad news, but we could see a decent haircut in the price of Steem in the next few weeks. I have scenario casted two possible moves for STEEMUSD as described below.
Looking at the chart, Steem is currently consolidating and forming a nice break out pattern on the 4 hour. Within the larger pattern, we can see a smaller breakout pattern near the top of trend line. This further squeezing with low volume is normally a very bullish indicator of an impending breakout to the upside.
However, it appears there is no buying momentum for a break out. If price continues to drag along the bottom of this trendline , there is a high chance that it will break this smaller trendline and see further downside.
Follow it LIVE @ TradingView: https://goo.gl/Cby5j8
There is also a head and shoulders pattern in play, that on completion would target the $1.50 range. These patterns do not always complete so its not all bad news.
On a probability based assessment, the bearish scenario looks more-likely and also provides a greater risk/reward for traders.
On the flip-side, should STEEMUSD break out to the upside, we can expect a projected move up to $4.
Disclaimer: This is only my opinion, make of it what you wish. It is not financial advice.
