STEEM Chart Update: March 8, 2018

It's been a few days since my last post on the STEEMBTC chart. From my previous post, Steem was hovering at 0.00031 that time, but the outlook wasn't quite rosy. Here's a short recap of what I wrote 8 days ago:

Frankly, I don't think we are out of the woods yet. There doesn't seem to be any sign that this decline has ended. Looking at the chart, there are three support levels that I've highlighted. First is the 61.8% Fibonacci retracement level at 0.00028, which also provided as support in early January the first time price raced to 0.0060. The second is 0.00025, which had served as a major resistance and support level in the past. Finally below that, will be the 78.6% retracement level, which is sitting at the 0.00020 level.

With that said, let's see where we are today. Here's the latest daily chart on STEEMBTC:

True enough, we saw price going lower further since my previous post. It is currently below 0.00028, and the next support line will be 0.00025. The 0.00025 level represents a major support line where price can bounce up from here. If this level is also breached, the next major support will be at the 78.6% retracement level at 0.00020.

Furthermore, price seems to be following a downtrend channel indicated by the purple channel on the chart above. I believe it has to break above this channel to stem the downward spiral. Breaking the channel can certainly indicate that a new trend may be emerging. It may not necessarily be an uptrend; a sideways range trade could be possible as well. The upper line of the downtrend channel currently sits at around 0.00030.

What's Next?

I still don't think we are out of the woods yet. The one reassuring data from the chart for Steem holders is that all this decline is happening on low volume. Personally, I'll look at the 0.00025 level as a possible level where price can trade sideways. Of course, with some fundamental catalyst (i.e. news, announcements), price can always react to it and all technical analysis will not matter. Until then, I believe this is a technical trade that we're experiencing at this time.

As always, trade carefully everyone!

Risk Warning: All comments, charts and analysis on this post are purely my own and should in no way be treated as recommendations or advice, nor should they be construed as an endorsement or recommendation to buy, sell or hold. Please do not trade based solely on the information provided on this post. Furthermore, past performance does not guarantee future success. Always do your own due diligence and analysis when trading.