Last week, in my post entitled "BTC and STEEM entering a bigger correction" I speculated that we might see a bigger corrective price movement in both crpyto assets". One factor we identified was a lack of volume which, we argued, was an indication that further upward movement would be quite difficult. In addition, the wedge pattern firmly established could not sustain this "frail" price movement. The resistance in between the 10ks and 12ks which BTC had established in the past could not be broken.
A correction we argued could take us potentially quite far down. Perhaps in the mid 5ks. But so far, it seems clear that a breach into the lower 8ks is very likely. See this post as well for a better explanation.
If a corrective pattern of ABC plays out, then I would argue that the mid 5ks is a good candidate for two reasons: it corresponds to the often established 0.382 fib retracement, and it would bring the price right to the bottom support line as seen in this graph. Timing of such a correction is somewhat difficult to predict, but as the halving of BTC is expected to occur in May 2020, it could align with that time frame.
For STEEM, the high upwards momentum transpiring in the lat weeks could not be sustained. A key indicator for this was the 300% price increase as well as the completion of a 12345 impulse wave as seen in the graph. A correction played out and so far it aligns with the ABC correction.
On a side note, I powered up close to 5,000 STEEM today as the (A) position is a good time to buy. We might well see prices for STEEM as low as 15cents in the next weeks. But don't count on it.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
