I can completely understand some are worried about the drop in steem price and cryptos in general after that fantastic rally in December, especially those who bought in 2018. It's been a hard winter but I'd like to share with you a chart and my own personal commitment and belief that this thing is just getting started. The caveat here is that this is a long term game.
So here's the chart. Notice anything? I pointed several things out here but for the most part I want to point out that right here in this part of the year was about the low point for Steem price in 2017 before the volume came pouring in and the price surged.
I'm not by any means saying it will be the same this year but there are a few other potentially positive indicators that we could be around the bottom perhaps even for the year. I mentioned the low point date around this time last year but here's some other things I noticed...
- RSI on the weekly chart has not dropped below 50ish since winter of 2017 and that's about where it is now
- We are sitting on a support line that goes back to June of last summer
- This isn't a technical chart thing but many people don't have a lot of money to invest in the winter months due to spending on holidays, paying unexpected tax bills, etc
- Volume started pouring in early in the spring last year and the price started to appreciate for most cryptos
- finally, this is not shown in the chart but Bitcoin helped STEEM and other alts gain in price last spring and it is undergoing a consolidation phase right now in my opinion
Speaking of bitcoin, I want to give mention to a steemian who called the double top in Bitcoin around 12k and the most recent low around 9k to the letter. Excellent job @luiggih! I hope you get some more recognition for your charting skills. Here's the bitcoin chart several days after her prediction...
Check out the amazing accuracy of @luiggih EW analysis in the post way earlier in the week. SKILLS!!
https://steemit.com/beyondbitcoin/@luiggih/bitcoin-expect-the-unexpected
I've recently followed this user and will pay close attention. Many were calling for a bullish scenario and they got it wrong in the short term but not this one...who NAILED it!
This is a small part of the due diligence that led me to a small buy in the 9100 area today and also part of what gives me the impression that we're in for a bounce soon. I didn't buy today because of her post but it was one of many useful tools of the due diligence process.
I also want to prove that I'm not just trying to get people to buy steem....that's the last thing I want is for people to just do something with their hard earned cash just because that's what I did. However, here's my proof that I think it's a good entry right here right now.
It's a small one but it's my first Steem buy of 2018. I don't know how much lower it could go. This could be the bottom for the year or for much much longer. But there's also the possibility that the support line will fail and my observations meant nothing in terms of predicting price action. I dollar cost averaged a lot in the fall of 2017 and I watched the price drop after quite a few buys but those are all in the green now. PATIENCE PAYS OFF!
Now I know not everyone can afford to invest but I know you all have the potential to earn through authoring and commenting so get out there and do it! Stack that good steem to the sky and maybe power some or all of it up instead of sending it to some exchange and selling it at a low point.
I understand that there are some who rely on earnings to put food on the table and I completely understand and hold no ill feelings towards those folks. But if you can afford it, I think steem power is the way to go especially with earnings, that's why you see my power up right after the purchase and that's why I power up most if not all of my earnings--Because SP generates more earnings in so many ways.
So if your average is higher than the price now (if you invested recently) don't fret too much. I was under water on my buys for a bit my first few months here and it sucked but then that magical month of December came and gave the crypto world a hell of a boost. Who knows when the next one will be, but I'll keep buying dips like this indefinitely.
This is not investment advice and I'm not an investment advisor or professional. Always always always do your own research before throwing your money at something, especially something as volatile as cryptos. Never buy just based on what some dude on the internet said...that's how you lose money in many cases.
I hope you all have a great weekend and let's see how this price action plays out!