SEC S16-W3: Steem’s Potential in the Bull Run

Edited using Pixellab App

INTRODUCTION

Have you ever wondered why there is a bull in the market? In its literal meaning, a "bull" is a big, strong, and powerful animal with horns that point upward. Then, what aspects of a bull relate to a market, what causes a bull market and how different projects react to a bull market is what we are going to learn this week.

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Considering the current cryptocurrency bull market, what are your specific predictions for the price and performance of the Steem token by the end of 2024? What are the key factors you considered in developing this forecast, and how might these influence Steem's trajectory in the cryptocurrency landscape this year?

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The term "bull market" is used metaphorically to describe a market trend where prices are rising.

That is, a bull market in cryptocurrency is when the overall trend of the market is going up for an extended period, it is like a prolonged phase of excitement and optimism where the prices of cryptocurrencies keep rising, with people, users or investors generally more confident in investing and buying cryptocurrencies during the bull market because they believe the prices will continue to increase. This sort of market is likened to riding a rocket to the moon, as they always relate the hiking in cryptocurrency prices to heading to the moon.

Edited using Pixellab App

Just like a bull charges forward with horns up, a bull market in crypto means that prices are going up and there's a lot of optimism and excitement among investors. So, when we say "bull market" in the cryptocurrency world, it means a period of upward price movement.

So, let's say we are at a farmers market (cryptocurrency market) where there's a lot of buzz and excitement. We get to notice that the prices of fruits and vegetables keep going up day after day because of the buzz and excitement. This leads to people buying and stocking up because they believe the prices will keep rising.

This is like a bull market in the farmers market, just like the cryptocurrency market, it is the buzz and excitement that brings about the bull Market. It is a time of optimism and people are confident in the growth of prices. Just like in cryptocurrency, it's all about that upward trend.

Therefore, here are some factors that can contribute to a bull market in cryptocurrency:

Positive News:

When there's good news about cryptocurrencies, like new partnerships or technological advancements, it can create excitement and optimism in the market. People get more interested and confident in investing. And currently, we can find such news on the BTC ETF and the halving of BTC this year, April to be precise.

Growing Adoption:

As more individuals and businesses start using and accepting cryptocurrencies, it increases their value. When more people believe in the potential of cryptocurrencies, it can drive prices up. We can again find an example of this in the BTC ETF and the growing rate of new addresses.

	screenshot showing the number of active Bitcoin addresses, gotten from lookintobitcoin

	screenshot showing the number of New Bitcoin addresses, gotten from lookintobitcoin

Both screenshots above shows growth in both active Bitcoin users and Newcomers over time.

Supportive Regulations:

When governments and regulatory bodies establish clear and favourable regulations for cryptocurrencies, it can boost investor confidence. Positive regulations can make people feel more secure and encourage them to invest. This also leads us back to the BTC ETFs as the SME accepts its proposal.

Market Sentiment:

The overall mood and feelings of investors play a role too. If people are generally optimistic about the future of cryptocurrencies, they're more likely to invest, which can drive prices higher.

Investor Confidence:

When investors feel confident about the market and believe that prices will continue to rise, they're more likely to buy and hold onto their cryptocurrencies. This increased demand can contribute to a bull market.

My specific predictions for the price and performance of the Steem token by the end of 2024.

BTC being the Grand Patron of all cryptocurrency tends to have a strong pull on virtually every other cryptocurrencies including the altcoins to which our dear Steem belongs. And again, in our recent classes, we've been able to prove that the BTC and STEEM are best of friends from the onset of the STEEM project using their correlation coefficient, this means that if BTC goes right, STEEM follows, and it goes left STEEM also follows because that's what best friends do.

With this in mind, I have great optimism in mind for the price of STEEM, but bearing in fact that the cryptocurrency market is unpredictable, I will say my specific hope is that STEEM breaks through the $1 mark like it did a a few years back after the halving of BTC in 2020.

My optimism and predictions are based on the fact that the BTC halving is just around the corner and this will inevitably bring about an increase in the price of BTC as it has always done in the past halving, then coupled with the BTC ETF approval this year, so I'm hoping that BTC's best friend STEEM follows the same footsteps.

Edited using Pixellab App price data source

Other important factors I am considering for this forecast include:

Market Sentiment:

This is all about how people feel about cryptocurrencies in general. If there's a positive vibe and lots of confidence in the market like it is doing right now due to the positive news from BTC corner, it can have a positive impact on Steem's price, because everyone is excited about something and those who can afford the high-value cryptocurrencies like BTC will want to look at alternatives like the STEEM which will lead to steem doing well too.

Adoption and Usage:

Earlier, I stated how this contributes to a bull market in the cryptocurrency world. However, under this section, this factor looks at how many people are using the Steem platform. If more people start using Steem for things like creating content, blogging, or connecting with others, it can increase the demand for Steem tokens and when demand goes up, the price can follow suit bearing in mind supply remains the same or better less as in the case of BTC halving (basic law of demand and supply).

Platform Developments:

Keeping a keen eye on any updates or changes happening within the Steem ecosystem. This could include new partnerships, cool technology improvements, or even changes in how the platform is governed for example the club status and burn Steem initiatives which were not in place initially when some joined the project. These developments can provide insights into how Steem might perform in the market.

However, it is also important to remember that the cryptocurrency market can be very unpredictable and there are lots of factors at play, which makes it hard to know for sure what will happen. Therefore, considering these factors can only give you some idea, hence, it is always a better idea to do your own research and approach price forecasts with caution.

In the end, I can say that the trajectory of Steem in the cryptocurrency landscape this year will be influenced by market sentiment, adoption, platform developments, and other external factors (such as BTC ETFs and halving, general market sentiment, etc.)

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What technical indicators do you currently recommend to assess the upward trend of the Steem token in the cryptocurrency markets, and why are these indicators relevant in the current context?

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When it comes to assessing the upward trend of the Steem token, there are a few technical indicators that can be helpful, including:

• The Moving Averages
• Relative Strength Index (RSI)
• The Trading Volume

Moving Averages:

This indicator looks at the average price of Steem over a specific period. It helps to smooth out the price fluctuations and gives us a clearer picture of the overall trend. For example, a rising moving average suggests an upward trend, while a falling moving average indicates a downward trend. Hence, when looking for the more stable points of the STEEM market price we should learn to use large days, weeks months intervals to get a more accurate and stable price movement.

screenshot from Tradeview

The above image shows a screenshot of the STEEM/USDT pair chart under the 1-day interval. Also on display is the Exponential Moving Average (EMA) in two different durations of 9-day (Yellow 🟡) and 60-day (Blue 🔵). We can see how smoother the 60-day MA line is compared to the 9-day MA line.

Relative Strength Index (RSI):

This indicator measures the strength and momentum of Steem's price movements. It helps us determine if the token is overbought or oversold. If the RSI is high, it means Steem might be overbought and due for a potential correction. On the other hand, a low RSI could indicate that Steem is oversold and might be poised for a potential upward move. This is also considered to be better or more accurate with bigger intervals as it smooths out the little fluctuations to give more stable price movements.

	screenshot showing RSI graphing of STEEM/USDT chart in 1 Day interval.

	screenshot showing RSI graphing of STEEM/USDT chart in 1 week interval.

All screenshots from Tradeview

The above images shows screenshots of the STEEM/USDT pair chart under 1-day and 1-week intervals. The one week interval also shows a more stable price movement of STEEM token.

Trading Volume:

Volume refers to the number of Steem tokens being traded. When there is high trading volume, it suggests strong market participation and can indicate the sustainability of an upward trend. If the volume is low, it might mean there's less interest and the upward trend could be weaker.

These indicators I consider to be relevant in the current context because they provide good insights into the market sentiment and the strength of the upward trend. Therefore, by analyzing moving averages, RSI, and volume, we can get a better understanding of whether the Steem token is likely to continue its upward trajectory or if there might be potential changes in the market.

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Explain in detail the fundamental characteristics of the Steem blockchain that could contribute to its success in a cryptocurrency bull market. How does Steem's underlying technology stand out from other projects?

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Let us look into the fundamental characteristics of the Steem blockchain that contributes to its success in a cryptocurrency bull market.

Content Rewards:

One unique feature of the Steem blockchain is its ability to reward content creators. It has a built-in mechanism that allows users to earn Steem tokens by creating and curating valuable content. This incentive system encourages active users and can attract more users to the platform, which could potentially drive up demand for Steem tokens during a bull market.

Decentralization:

The Steem blockchain operates in a decentralized manner, meaning that it is not controlled by a single entity or authority. This decentralized nature enhances security, transparency, and censorship resistance. In a bull market, where there might be increased interest in cryptocurrencies, the decentralized nature of Steem can be appealing to investors looking for alternatives to traditional centralized systems.

Fast and Scalable:

The Steem blockchain is designed to handle a high volume of transactions quickly and efficiently. This scalability can be crucial during a bull market when there is a surge in user activity and transaction volumes. The ability to process transactions rapidly can contribute to a seamless user experience and attract more users to the Steem platform.

Community Engagement:

The Steem blockchain has a vibrant and engaged community of users too numerous to mention. This community actively participates in content creation, curation, and discussions and has even dedicated a wonderful project such as the engagement challenge to this call. During the bull market, this strong community engagement can play a significant role in driving the success of the Steem blockchain. It can foster collaboration, innovation, and the sharing of valuable insights, which can further enhance the platform's growth and adoption.

These fundamental characteristics of the Steem blockchain contributes to its success as it makes it stand out from other projects. However, it's important to remember that market conditions can be unpredictable, and investing in cryptocurrencies always carries risks.

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How has the actual adoption and usage of the Steem blockchain by users and applications evolved recently? How might these factors influence the continued growth of the Steem token in a cryptocurrency bull market?

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I can say that the adoption and usage of Steem have been steadily growing as more and more users are joining the platform, creating content, and engaging with the community. This growth has been fueled by the unique features of Steem, like content rewards and decentralization, which attract content creators, bloggers, and enthusiasts.

While I couldn't get my hands on actual real-time data, I can share some general insights about the Steem blockchain's growth.

Over time, the Steem community has been expanding, with more users joining the platform and engaging with the content.

This can be observed through the increasing number of active users we get from the Steemit engagement challenges and communities, the amount of content being created, and the overall activity on the Steem blockchain. Steemit being the no.1 platform of the STEEM Blockchain can provide an insight to the growth of the STEEM Blockchain.

screenshot showing the number of Steemit users per day in the last 3 months, gotten from semrush

Furthermore, the integration of Steem into various applications and platforms like Steemit, Hive, Ecency, Dtube, Actifit, Steemhunt etc, has also contributed to its growth. These integrations provide additional avenues for users to interact with the Steem blockchain, increasing its adoption and usage.

While I can't provide specific data at the moment, the overall trend of Steem's growth and the continuous development of the ecosystem are positive indicators of its steady progress.

As more users and applications start using the Steem blockchain, it creates a positive feedback loop. The increased usage leads to more valuable content being created, which attracts more users, and so on. This can have a significant impact on the growth of the Steem token, especially during a cryptocurrency bull market.

During a bull market, when the overall cryptocurrency market is experiencing a surge in prices, the demand for cryptocurrencies like Steem tends to increase. As more people get interested in cryptocurrencies, they might discover Steem and its unique features. This increased demand can potentially drive up the value of the Steem token.

Additionally, the usage of Steem by applications can also contribute to the growth of the Steem token. As more applications integrate with the Steem blockchain, they create additional use cases and utility for the token. This increased utility can attract more investors and users, further boosting the demand for Steem.

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In the context of the bull market of cryptocurrencies, how does the Steem token position itself compared to other similar projects? What market trends do you identify as being crucial to the short and long term success of the Steem token?

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During a bull market in cryptocurrencies, the Steem token positions itself as a unique project compared to others. It's all about the community and content creation.

Steem focuses on rewarding users for creating and curating content on its decentralized platform. This means that people who contribute valuable content, like blog posts or videos, can earn Steem tokens. It's like getting paid for sharing your thoughts and creativity.

Now, when it comes to market trends that are crucial for the short and long term success of the Steem token, a few things stand out. First, the growth and engagement of the Steem community is vital. The more active and passionate users there are, the stronger the platform becomes. So, the community's involvement and support play a big role.

Secondly, the adoption and integration of Steem into other platforms and applications can also boost its success. If more websites, apps, or services start accepting Steem as a form of payment or integrate it into their systems, it can increase its usage and value.

Lastly, keeping up with technological advancements and staying relevant in the ever-evolving crypto space is crucial. Steem needs to adapt and innovate to meet the changing needs and preferences of users.

CONCLUSION

In conclusion, the bull run in cryptocurrencies has had a significant impact on the Steem token. As more people join the crypto space and seek opportunities for earning and engaging, Steem's unique focus on community, content creation, and rewards has positioned it as a standout project. The bull run has brought increased attention and value to Steem, highlighting its potential for long-term success. With its vibrant community and innovative approach, Steem continues to thrive in this exciting crypto landscape.

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I wish to invite @starrchris, @ngoenyi, @chants and @hamzayousafzai.

Thank You for your Time

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NOTE: Always have a smile on your face, as you are never fully dressed without one.