STEEM Update: Bounced From Key Support Level
After dropping from support at 3.62, STEEM has bottomed out at 2.60, an area between the two support lines I drew in yesterday's update.
Today the price has hit a high of 4.00 from its lows, and has reclaimed the upper level of support at 3.62.
A decent amount of this price action could have directly been caused by the bounce of Bitcoin. Like I said in the previous update, if more buyers come in for BTC, the price of STEEM will most likely follow the bounce.
As you can see in the chart, I drew Elliot waves to demonstrate what the price movement could possibly be in the next week or so, if BTC starts rallying. This would essentially almost mirror the last time the price hit a bottom similar to January 17, with 5 being at around 5.50.
Conclusion: I am bullish on STEEM, mostly because of the fact that it was capable of finding an area to bottom out at with Bitcoin's price movement. I would like to see a flag develop similar to the area between 1 and 2 for more confirmation and for the price to stay above 3.60.
Disclaimer: (I am not a financial advisor, do your own due diligence when investing in cryptocurrencies. This is just my speculative opinion.)
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