FOMO has officially kicked in... Steem trading at $.43. What's next?
Fear Of Missing Out has officially kicked in and there is no telling when it will stop.
Is this a blow off top or the middle of a massive bull run?
As I type this, Steem is trading around the $.42 mark. It just touched $.43 a couple minutes ago.
Here is a chart of Steem in BTC:
This is a 2 HR chart showing a 1 month time frame.
Take a look at the volume in those most recent 2 hour candles. Some of the biggest volume we have seen in the last month and it is taking place at higher prices. Lots of money is flowing into the space...
The second chart is a 4 HR chart showing a 1 month time frame:
As you can see, Steem is breaking the previous monthly highs and is in full blown FOMO mode. Buyers are eagerly eating up any sell orders that pop up. We have currently just passed the $3 million dollar volume traded in the last 24 hours, which is one of the bigger amounts in a single day.
My Thoughts:
Normally, when I see trading activity like this, my first inclination is to sell. I think to myself this is extreme bullish behavior and it can't last forever, the best move is to take profits.
However, this isn't JUST going on with Steem. Altcoins everywhere are flying up as well. We have seen a massive amount of money enter the entire space over the last 2 weeks and it really hasn't shown any signs of slowing.
A lot of that new money appears to be coming from Japan as mentioned here:
https://steemit.com/bitcoin/@jrcornel/the-next-tulip-mania-or-the-beginnings-of-something-more
So, yes this is extreme bullish behavior but since we have some rule changes taking place in different countries (consumption tax going away in Japan on virtual currencies) around the world, and since these coins are being introduced to new places for the first time, we might continue to see a lot more money flow into this space for some time to come.
What do we do now?
That is the $64 thousand dollar question!
As mentioned above, my first inclination is to sell this kind of trading activity, but that probably depends on your investing time frame. Yes, we might see a pullback fairly soon here, but with the amount of new money coming into the space we might see a continuation of this bullish trend for some time yet.
So, if you are a trader and looking to capture every peak and buy back on every dip it might be a good time to lock in some gains. However, if you are more of a longer term investor we might see much higher prices yet to come.
Times like these are always tough to know which action to take and when that happens sometimes the best action is no action at all.
If I sell here I may be happy that I locked in a nice 30% gain, but I could be kicking myself when the price is 2X higher a week or two from now, so again it all depends on your trading/investing time frame and ultimately your personal goals.
Good luck everyone and stay safe out there. Remember to stick to your trading/investing plans and don't let emotions dictate your decisions.
*Remember to do your own DD before making any Buy or Sell decisions
Follow me: @jrcornel
this is why I like having my Steem locked up as Steem power... no temptation to sell :-)
That is helpful... and even if you are powering down it only lets you sell a portion of your position at a time... which in most cases ends up being a good thing! :)
It's huge! I am mostly living paycheck to paycheck right now and Steem's non-liquid nature is ironically one of its greatest benefits for me... can't spend it on a whim.
Well there you go! I actually wish we didn't even have SP. I wish liquid Steem could have all the same rights as SP currently does... that is the ideal setting in my mind for the masses.
The reasoning for Steem Power is explained in the white paper
I think the same. I have Steem, BTC and UAH only.
Spot on. Steem power is here to protect inexperienced people like me and many others from mistakes and earn them money. People don't realize that this is probably the main and most beneficial feature of steem.
I think this is just the beginning... as it pertains to Steem. All cryptocurrencies are not created equal. Where some of them may level off and maybe drop, Steemit is really still in its infancy. I believe they have a great idea, to combine the currency aspect with the rewards for creation aspect. I think that the more people that learn about the platform, the sky really is the limit.
Great point! Yes I tend to agree with that. Ideally, when this super pump of all crytpto's starts to fade and die down, Steem starts to hit it's stride in terms of maturity to a point where people and money continue to flow into it because of how great it is. Sort of like one stage hands off to a completely different stage...
Absolutely! Bitcoin and many others only provide investment potential. I've read articles about how rich we'd all be if we got into Bitcoin when it first started. Unlike bitcoin, we have a community. There's more than just investment that holds us together... and we're in on the ground floor. I don't like to give investment advice in case I'm wrong... But I'm in this for the long haul!
Great thoughts. I am as well. My only concern is that someone beats us to the punch if we take too long... we need to strike now. We have first mover advantage and a lot of eyes on crypto right now. We need to take advantage of that before we lose that opportunity.
Yes! I keep plugging away trying to get people here. My friend Joe Dan Gorman has a huge following but when I share his videos on here, they get flagged. That's one problem that needs to be addressed- just because you don't like somebody's point of view, that's not a good reason to act like that! That's the kind of stuff I'd expect on Fakebook and it turns people off to the platform. The "flag wars" (or fag wars as I call them) has cost Steemit more than one good contributor!
Yea the downvote and the flag absolutely need to be separated. A flag should be reserved for spam or abuse. And only a flag should make a post invisible not a downvote... those are my thoughts at least.
My policy is that if I see a post that I don't like, I keep scrolling... But, then again, I'm an adult.
Yea I tend to take the same approach you do... sometimes being an adult gets in the way of things eh?! ;)
meep
meep meep!
meep
Good article!
Just one note: If you are planning on selling, never sell all.
Myself, I think that Steemit and the underlying currencies are hugely undervalued.
Great point and something I probably should have included. Selling in chunks is a great strategy to use. That way if it crashes at least you got some sold at "high" prices and if it keeps going up you still have some to go along for the ride.
I think a lot of the increase is coming at least in part from rising values (compared to USD, EUR, etc.) of many other cryptocurrencies lately, and some of that is spilling over into STEEM as well. "A rising tide lifts all boats" is how one might describe this situation. In any case, I believe these gains help to bring attention to the Steemit platform, which I hope is a good thing for all.
Yep, you are exactly right. This isn't Steem specific at all. Check out that link in the article about the money coming in from Japan... it appears they are the ones doing most of this virtual currency buying...
It occured to me recently that 'miners' on steem ( aka steemians) don't have any operating cost so less coins will be dumped because there is no expenses like electricity, hardware,etc.to cover which means steem has less sell pressure than other crypto. Feel free to correct me if I'm wrong.
That is possible, but is also possible that since they basically earn their coins for free they may be tempted to sell them for whatever price they can get... another way to look at it, but I like your thought process better :)
Steem "miners" can dump coins at any price for a quick profit. And some do. Conventional miners need to balance expenses and profits more carefully so they will usually not sell below their production cost. Something to consider at least.
Thank you for your information and professional opinion!
Of course! I wish I had some better insight on what comes next. I need to dust off my crystal ball, it's a little cloudy at the moment! :)
Great reports and they are really appreciated my friend @jrcornel
Thanks, glad to keep you updated! I generally don't like to post on the topic of steem too much, but since this is an exceptional time in our history I figured I would make some exceptions lately :)
It makes you wonder if it is just going to shoot at the moon doesn't it?
Haha I think it will... it all just depends on your time frame and you definition of "the moon" :)
Stack and hold all major alt-coins for the next 18 to 24 months is the safest bet if not a speculator and then re-assess often. Keep researching and key eye on blockchain evolution as the coins that don't keep up will die. Speed, functionality and clear development timelines.
That is probably some very good advice. Thanks for sharing!
It is easy to get excited however we are only at the beginning of this journey and mainstream is still asleep. When they wake up in a few years we will be all glad we stacked and held on. Few trades and exchanging of holdings between coins as they rise and fall is ok if you know what you are doing. Speculation normally hurts more than it wins so I play a slower, more diligent game, which tends to be a little less stressful :)
Same here. It is much easier to sleep at night that way. I gave up the trading game a while back... I have slept much better ever since :)
Yes. Agree, although I have had my head glued to my Blockfolio app everyday watching this amazing month of growth. We are in a life changing period. Lets hope it keeps going for some time and everyone here does really well. :)
Yep agreed. It would be nice if we all were at the forefront of the next amazing growth area and not just part of the latest pump and dump... the more I read the more I feel like it is the former as opposed to the latter :)
You are well and truly at the beginning my friend. We are still in early adoption stage of the cryptocurrency/blockchain revolution which will exponential. The next two years in particular will be BIG for anyone invested now. Get your helmet on. :)
Haha! Strapped in and ready to rock! :)
Dogecoin worth more than Steem, draw your own conclusion. Rise has barely started.
something else to keep in mind if converting SBD to STEEM...
Link: DON'T CONVERT SBD to STEEM, BUY IT ON THE STEEMIT MARKET!