Updated Steem Price Analysis: Steem tops the $1 mark.

in #cryptocurrency7 years ago

Steem has been an absolute rocket ship today. 

As of writing this, it is up more than 120% and sitting at $1.11 (the high of the day).

Again, it isn't quite clear what is causing this moon shot, but it is more than just Steem going along for the ride. Altcoins in general having been going up for the greater part of 2 weeks now.

Steem is experiencing it's largest single day gain in some time. 

Lets go to the charts:

This first chart is a 2 HR chart showing a period of 2 weeks of Steem priced in Bitcoin.

As you can see it is an absolute moon shot!

The second chart is a daily chart showing Steem's entire existence, again priced in Bitcoin:

This is the chart I'd like to focus on and the one that really gets my attention for a longer term move...

Why does the daily chart excite me you might ask?

Well it is quite simple actually. Take a look at the pink line above. That is the 200 MA. If you look very closely you can see that as of today the price is actually peaking above it...

Why is that significant?

Steem hasn't really been above it's 200 MA since... ever! The 200 MA is a very powerful moving average that is looked at very closely by a lot of traders.

Since we have been below it for such a long period of time and it has been trending down, the first test is often met with some resistance. Which, in this case would mean that a slight pull back could be in store once it is touched. 

However, once that slight pullback is over it often charges through the MA and gains momentum as traders jump on board the powerful technical move. 

Breaking the 200 MA to the upside is often a signal of a longer term trend change as well. Higher highs and higher lows could be soon to follow.  

One more thing that gets me excited about those charts above...

The volume.

Take a look at the volume on the daily chart. As of right now we are likely on pace to have one of the highest (if not the highest) volume trading days ever.

Over $16 million dollar volume has traded in the last 24 hours. Big money is moving in and out. 

That is significant because it means a lot of steem is changing hands at higher prices. As an investor I want as much steem trading hands at as high of a price as possible. The more steem that trades for higher prices the more likely it is to hold a higher price.

Basically it helps in setting a new floor. 

All this technical stuff is great but there is another factor here that I would like to touch on.

And this factor is likely much more important than all the technical stuff. 

An important factor that will dictate whether this price rise is sustainable or whether it comes crashing right back down is to factor in who is doing the buying and why they are doing it. 

Look at this snapshot from a few days ago and we can see pretty clearly who one of the largest buyers is right now:

Japan!

You can read more about it in this post:

https://steemit.com/bitcoin/@jrcornel/the-next-tulip-mania-or-the-beginnings-of-something-more

More than 10 brand new virtual currency exchanges are coming online right now in Japan. Plus, the consumption tax on virtual currency trading is being eliminated in June. That is causing massive demand from the region.

Plus we have virtual currencies being introduced in other countries for the first time right now.  

In my opinion, that driving force doesn't look like it is going to let up in the immediate future.

In Conclusion... 

Yes, we might have dips and pull backs along the way, but there is a massive Tsunami driving this thing that is likely very different than a normal run of the mill pump and dump. Also, many technical indicators are only just now flipping to the positive side...

And in my opinion, that is a pretty exciting combination my friends!

Stay safe out there and be sure to stick to your trading/investing plans. Rarely do decisions based upon emotions turn out to be good ones. 

Image Source:

http://www.zerohedge.com/news/2017-05-04/bitcoin-soars-above-1600-relentless-japanese-buying-frenzy 

Follow me: @jrcornel 

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Haha I agree! Now we just need India to follow suit!

The summer of all cryptocurrency lol.

India was never a part of the party, right?

That is a good question. I think crypto is being introduced over there as well but most of the buying of bitcoin recently (and then the altcoins) was coming from Japan.

I am saying this because I am Indian. Government hasn't considered these coins legal yet. A lot of companies are trying those online petition signing...

Mostly for Bitcoins...

Nothing has changed much. This is a country with a billion people and so many are deadly curious to get into crypto.

Too tough.

Heck, even buying litecoin was quite a process as we have to convert from INR -> USD -> BTC -> LTC.

Kinda unfortunate, but hey, that's life I guess. :)

This comment is very insightful being that you speak with experience. Hoping India joins the party. Population is always a huge thing and India has it!

Yes, absolutely! I do tell my friends about it.

Most of them still don't believe / take cryptos seriously.

The problem is, many media outlets have shamed cryptocurrency. Still those who know its potential - who have been around for a while - are always finding ways to enjoy the benefits.

We definitely need the government to legalize cryptos! This year, the focus is on going digital / cashless - so let's hope things changes. Fingers crossed there! :)

Yes, things will change in India, pretty sure about that. Bitcoin has been the face of crypto and that has really affected how crypto is views in general. But India has a level of literacy, so change will definite happen soon!

Oh wow. Yes I would imagine in time that will change... if that does the sky is the limit for these currencies. Hopefully all the increased awareness and publicity puts some pressure on them...

Absolutely. If India enters, man, we are all gonna have a Ferrari. :D

Until then, we function slowly yet steadily. :)

Thank you for this post. I have been very curious about what is happening in India but here in the US we seldom hear anything about the economy in India, especially the crypto currencies.

I am glad to know!

India is huge! And our PM wants everything to be digital - to go cashless is the aim. Unfortunately, crypto doesn't make it into the list. We have private companies offering faster "wallet to wallet" transfer that are gaining huge traction.

It's mind boggling, really!

How I wish cryptos were part of our everyday affair. Also, as much as it hurts to say, our Government is trying to "control" everything - so they can have more control over the economical situation.

I am anyway adopting and embracing cryptos. I see it as one of the best way to transact internationally and quickly without leaving any trace.

You guys love your gold as much as I do

India is deciding on what to do soon regarding regulation and taxation. They should be entering the crypto party more fully soon.

Koniciwa!

This makes me happy, very happy lol

Bruhh its becuz the creator is Japanese and has 1/3 of all bitcoins or something like that

You are referring to "Satoshi Nakamoto". No one knows who he really is. However most people think he isn't really Japanese.

I like this, new investors are holding steem now.

".. a lot of steem is changing hands at higher prices. As an investor I want as much steem trading hands at as high of a price as possible. The more steem that trades for higher prices the more likely it is to hold a higher price."

Yep, I like that as well :)

Hey man - that price charting analysis is right out of my play book. Good stuff! More importantly is the point you made about Japan and the exchanges. There has to be demand for their to be positive price action on the chart.

Exciting time indeed. We've both been around steemit for a while posting regularly, now if I can only catch up with you in upvotes....still chasing you after all this time...lol. Keep up the good work man!

Haha thank you! Hopefully our charting and analysis turns out to be correct! The price is pulling back a bit here, which is not unexpected, as long as the floors are higher we are good to go.

Exactly, if we can hold and consolidate above the .00045 high from Dec. that would be constructive price action.

Yep, agreed!

Hopefully Steem can take away some of the steam of Facebook and Youtube. Ive been using Steem for one day and can tell I will be using it more and more as i find people I follow on Youtube make the move here. We ahould encourage Youtube channel owners to move to Steem.

This is getting insane! Thanks for a well done report :)

Yes it is. Surprisingly... I think it can last a while. The main drivers are pretty big ones.

Yeah, let's hope it will stay stable for a while :) I would be sad if it falls far down as fast as it rose.

Yea... I would be too. Hopefully the reasons for this rally are able to keep it from crashing right back down... I think there is a good chance they will.

I honestly didn't think we would see this until years end. Happy to see it happen now maybe I can set a new goal.

I really didn't either. It came out of no where. Now that it is here it seems like it could be more than just a flash in the pan...

Thanks a bunch for sharing your knowledge in relation to this wicked mooning, it is blowing my mind right now! All for one and one for all! Namaste :)

Same here! Hopefully this is just the beginning! :)

Great post it made me feel all warm and fuzzy inside. Cheerz!

Haha good, hopefully this is just the start...

Excellent post dear friend @jrcornel, very good news, happy for nustra criptomoneda to have started an ascent, to continue slow but without pause.
Thank you very much for all this information and your point of view

Of course! You always have kind things to say!

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