Happy Friday everyone!
To cap off the week, I thought I'd revisit the STEEM/BTC chart again. Recall that earlier in the week, I shared that we've finally surfaced out of our longstanding downtrend channel. Check out my post here.
At that time, I mentioned that although we've broken out of the downtrend channel, it doesn't necessarily signal that we are back on the uptrend. There was a surge from 0.00022 level to 0.00038 (70% within the span of a few hours!), but the follow through was weak and there was no indication of mass participation. Hence the price fell back as quickly as it had risen.
Now 3 days later, here is how the chart looks like today:
I've drawn an orange box around this week's price action. The surge has coincided with a new month (Coincidence?). It's certainly refreshing to move out the downtrend channel (purple colored channel) that had otherwise persisted for more than 2 months!
So it seems we are now in a sideways range. One worrying sign is that on 3 of the bars this week (technically, 2 bars, as today's bar has not closed), the upper wick has been quite long. This means that every time a push upward happens, there doesn't seem to be much follow through and price would fall back into the 0.00025 - 0.00026 level. This is currently the area where there seems to be more buying support and where price seem to be comfortable at.
For the weekend, my personal opinion is we may see price continue hovering around this area. Weekends of late have been relatively quiet, although past actions do not certainly dictate future performances.
After reflecting on the price action this week, my key takeaway is that the price certainly has the potential to move up to the 0.00040 range and above we've seen early this year. However, it will take more than an isolated few to make this happen. A spark is needed that will increase the demand of the masses. When this will happen, I believe, depends on the ongoing development effort of STEEM. Sometimes, a recognition from an external body can also provide a nice push, as what we've seen earlier. In the meantime, until that happens, I'm quite comfortable with where we are today in price. Sure it has seen better times, but there is no indication that this drift lower is a mass exodus on the technology. STEEM as a cryptocoin is still healthy and that's the most important thing for long term holders.
Enjoy the weekend everyone!
Risk Warning: All comments, charts and analysis on this post are purely my own and should in no way be treated as recommendations or advice, nor should they be construed as an endorsement or recommendation to buy, sell or hold. Please do not trade based solely on the information provided on this post. Furthermore, past performance does not guarantee future success. Always do your own due diligence and analysis when trading.
Chart courtesy of TradingView
