Hello Steemians! Let's talk about some key technical levels for STEEM/USD. As I am sure you have noticed that crypto market is in a correction mode. We can't forecast how far down it will go, or why it is going down. But we can see the potential levels from where there is a probability of a bounce. Also if those levels break, where the prices can go potentially. These levels are known as support in Technical Analysis (TA). More details can be found here:

http://stockcharts.com/school/doku.php?st=support+resistance&id=chart_school:chart_analysis:support_and_resistance

Lets look at a daily chart of STEEM/USD at the time of writing. This is a simple candlestick chart created at Tradingview.com. In this daily chart I have price, volume, Stochastic, 10 & 50 EMA displayed.

Note the wick of the current daily candle is bouncing from the 50 EMA which is considered a support (marked by green arrow). Usually moving averages can be support and resistance. It is always better if multiple supports converge at a price. In this case whole number are also considered support/resistance. Here 50 EMA is very close to 4.50. That is an important psychological level. As I mentioned in my previous post, the reason TA works is because a group of people, software and bots follow it diligently by their buying or selling order. So this is the reason psychological levels are important.

We have a common saying in TA; supports are only supports until they are broken. So that leads to if 4.5 level is broken; where the price will likely go next. The next levels from daily chart is shown in the chart below:

The next support level in the STEEM/USD chart seems to be 4.3 area, shown by the green line. Since it is so close to 4.5, we can consider it to be basically the same level and call it a support zone from 4.3-4.5. If this break where are some weak supports marked by some low in the 3.7 regions, and if that does not hold 2.7 - 3.0 is the next major support.

It is critical to note that no financial instrument trades in a vacuum. The most important currency in crypto is still BTC/USD. Currently BTC is threatening $10K level. There are multiple market participants at work to break the $10K level. As you probably must have guessed that I am talking about wall street in general. A whole bunch of firms are short BTC for various reasons. So bottom line if $10k level at BTC breaks convincingly STEEM could see sub $2 prices. Lets hope that doesn't happen.

Until next time...

Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Advisor. Consult professionals for any financial, accounting or legal related questions you have.
All links are from Stockcharts.com. I am neither affiliated nor paid by Stockcharts.com; I just find their content easy to reference as standard definitions. Please use them as standard internet content and use personal judgement if you re-use them.
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