BITCOIN DROPS BELOW $2000.00 AND STEEM DROPS BELOW $1.00! - TECHNICAL ANALYSIS
I REMAIN BEARISH!
My bearish call on STEEM and BITCOIN have been a pretty good call so far. Looking at my new chart, I believe STEEM is going to break out either up or down as you can see above. Triangle patterns are usually very informative and accurate. At this moment, even though I have a bearish bias, I would be very cautious because anything could happen from here. But since the market usually moves against the popular consensus and opinion, and since the popular opinion at the moment is buying the dip, I would not be surprised at all to see the price break down even further. below the new green line.
FIBONACCI RETRACEMENT - STEEM/BTC
Having a look at Fibonacci retracement on STEEM/BTC's daily chart, price is now between the 50% and 61.8% retracement of the rally that started back in March this year. Healthy corrections in a bullish trend usually retrace between 38.2% and 50%. Anything less than that causes worries because the price would moving up too fast, and anything more than that would also cause worries since the price would most likely be making lower highs and lower lows which would signal that the market has topped and a new bearish trend has started.
THE BEST CASE VS. THE WORST CASE
The best case for STEEM is that it will eventually break out of the triangle and will continue the bullish trend that started in March this year. In this case, I would expect to a new high above the previous record which was at 0.001 BTC. The worst case is that STEEM will break down and will continue the bearish trend in which case I would expect to see the price go back to March lows at 0.0001 BTC. I cautiously favor a break below the green line but I could be wrong. However, I will certainly not be a buyer unless I see the price break above the red line in my chart for at least a day or two!
MR. OPINIONATED!
Please be advised that trading cryptocurrencies comes with a high risk and any opinions, research or other information contained in my posts is provided as a general market commentary and opinion only, and does not in any shape or form constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
WHAT SAY YOU?
If you like this post, please consider giving it an upvote and/or a resteem as that will encourage me to post and share more stuff like this. Also, please don't forget to let me know what you think below. I won't be able to reply to every single comment, but I promise that I will read them all!
Don't forget to UPVOTE, COMMENT, and/or RESTEEM!
FOLLOW ME ⇿ @msg768
UPVOTE, COMMENT, and/or RESTEEM!
FOLLOW ME ⇿ @msg768
I'll wait until the hard fork. If you look at what happened to Ethereum, I believe Bitcoin and its new counterpart will add up to a greater amount of cash.
What do you mean by adding up to a greater amount of cash?
Let us suppose that the original Bitcoin will split into Bitcoin and Bitcoin Classic. This will mean that the price will be cut in half for both of the chains. Then, the price will grow on the chain that people see more promising. I am almost certain that it will be the one with SegWit2x. I cash out both of the currencies and buy some Steem Power. The cash sum of both chains will be greater than if I sold my Bitcoin before the split.
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by Arkadiy from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, and someguy123. The goal is to help Steemit grow by supporting Minnows and creating a social network. Please find us in the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you like what we're doing please upvote this comment so we can continue to build the community account that's supporting all members.
Congratulations on getting the bearish call correct! I do have to ask though, don't you think the downside risk from these levels is MUCH less than the potential upside potential? Of course anything is possible, and there could be more downside, but I would rather error on the side of being too bullish here because cryptos in general are still VERY early on in their bull market and they could explode on a bounce very quickly back to new all time highs... i would rather risk another 10% dip and NOT miss out on the next 100% gain that is coming very soon imo.
If the price falls back to let's say 20 cents from here. That won't be another 10% dip. It would be something like another 80% dip. And a buy from there to the 100% gain from here would be equal to a 1000% gain rather than a 100% gain. This is just an example to tell you how big the difference is! But I see your point, so whatever you do... good luck! ;]
i agree that steem long term it is a buying opportunity now -- but i see the floor for the current sell off around 30-40c as no one is standing up to be counted and trying to stop the rot of steem.
It's not just STEEM though. All cryptos are falling which was expected. Nothing goes up all the time. There's always ups and downs. It's best not to fight the trends and instead ride them if you can ;]
Crazy man.
Yep! Currently, there's a 10K order in the internal market from a guy who wants to buy at $1.00. I think it was 14K the other day, so as long as this order is not completely filled, price is gonna remain above $1.00 or quickly recover if it drops below $1.00 but once this order is filled, we would probably see quick melt towards the 90 cents imo! :]
Aaaaack!
Chart analysis aside, if we look at historical cycles in crypto, ETH may go to below $100.00 while Bitcoin may go to below $1000.00. The sale hasn't started yet.
Anything can happen but I personally think Bitcoin would be a good buy at around $1200.00!
This post has been ranked within the top 10 most undervalued posts in the first half of Jul 16. We estimate that this post is undervalued by $29.68 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Jul 16 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.