While I tend to share your buy low and sell high in principle, think about this:
Would you pay 390$ to gain 1000 more Steem?
This is how overvalued Steem still is, and Steem is one of less than a handful digital currencies with real life usage.
I think that if Bitcoin will go to zero, Steem will find a floor above zero despite it.
Still, as long as Bitcoin is above 1000$, I expect Steem to follow Bitcoin in its downward trajectory, even Bitcoin will lose 50% from its current value, and Steem will drop more.
Somewhere below 1000$ Bitcoin, Steem will start to outperform it, or at least supposed to.
But it will decline along Bitcoin, even if at a slower pace.
The longer the time, the weaker Steem becomes compared to Bitcoin due to its inflation.
So if Steem is so overvalued according to the would you pay 390$ for 1000 Steem, Bitcoin is too.
Why is 390$ still expensive?
Because 1000 more Steem will do almost no difference for almost all users in terms of how much they can be bullied by others here, and in terms of how much it will allow them to change the witnesses chart.
Multiply it by 10 and it does start to give you some deterrence against bullying, but still no effect on the witnesses chart.
However multiplying it by 10 is 3900$.
This amount of money can buy some cars or leave a lot of change from a monster PC, or yield income from stocks.
But it is the rich whom call the shots, and their considerations are less familiar to me.
Does a rich person have the need or the time for Steem activity?
Only if he is a bored rich person, and even if bored, there are better things to do with 3900$.
There will be those whom will pay, but is it enough to offset the selling pressure at 0.39$ per Steem?
It still seems expensive to me.
BTW, do you know if the witnesses get less when Steem goes down, or do they get more Steem?