Steem has just painted a perfect bullish picture:
Most of the Steem community probably noticed a massive green candle earlier today. This is not your ordinary random pump and dump candle. There is a lot to take notice of what happened today:
Firstly, what can start your weekend better with a massive pump with high levels of volume? Not much more I can tell you that much. Steem has bounced off the exact area I thought a bounce was needed to continue our bullish state. Hit the .618 fib and used it as key support and then made our move up after proper retracement levels were hit. Excellent.
Not only that, but this move up has just given us a higher high on longer time frames as shown on the daily. Higher swing highs on the daily is more bullish than the last few massive green candles we've seen on shorter time frames. It crosses off random pump and dump movements and shows the strength of the buyers as of late because of the consistency. Also, our 20 MA has just cross over the 50 MA and hasn't done so since May. Yes, its been a while. That is very bullish in my opinion considering how the rest of the market has been looking and shows that Steem has been changing the script. We are currently showing no bearish divergence on shorter timescales on this run up and the volume is agreeing that this is only the start. We are, however, showing a tiny bit of bearish divergence on the daily MACD which is ok. After such a random run up this is normal so I wouldn't dig too deep into that just yet. We just had a few days of accumulation, which was expected, after such a run up on 24th of September. We carved out a beautiful support zone right at the 1280 SAT support zone and haven't looked back. Although we do show some minor divergence on the daily, we can expect a minor retracement from here to clean up the chart and to prep ourselves for another leg up. A bounce off of the 1446 SAT area, our previous daily swing highs, would give great merit to the break. Hopefully by the next move up we can negate the divergence shown and start spiking our MACD to new highs so we can leave all doubts behind us.
I'm not sure if BTC has found its bottom but this looks very much that Steem may have found one. After the bounce off the 1043 low we never came close to retesting it. I would say we have an inverted head and shoulders but the shoulders don't necessarily fit the criteria so well just scratch that, but its damn close. We do have some over head horizontal resistance at the 1935 SAT area which should play out to be the next target to bust through.
Overall, Steem is leading the charge in bull town and I'm expecting higher price action from here. We may retrace a little before we do so. As long as we don't crap out below our resistance breaks, we are mega bullish on Steem in the near future.
Good luck!
