Crypto Analysis | BTC and STEEM Correction Confirmed (2)

Good day Steemians!

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20 days ago I made a post entitled "BTC and STEEM entering a bigger correction?" in which I argued that a lack of volume and repeating correction patterns would lead to a decline in price in both BTC/USD and STEEM/USD. 11 days this correction was confirmed and we are currently seeing a further decline in prices.

BTC/USD could not breach the resistance line coming from the peak in middle February and is heading for a further correction, possibly down to 5.600$ (although this is still unclear). However, as argued before the trend for BTC/USD in terms of correcting fractals is that we could be seeing prices go as low as this. This is indicated with (C) in the chart. There is a strong support coming from a trend line which started in January of last year so I doubt prices could fall lower than that.

There is also a strong head and shoulders pattern within the chart. It occurs on many scales and an obvious one is seen in the (B) peak: the neck line was breached in the last hours.

For STEEM/USD there is a similar picture, although there are obvious differences as well. The trend currently is pointing downwards despite the strong gains in the last few days. Compare this chart with the prediction of 11 days ago. It is pretty well on track with the biggest difference being the time frame. As one can see, prices could head (along with BTCs downturn) to about 15 cents. This could happen in the next 4-6 weeks I believe.

The support coming from the troughs of Dec and Jan will quite likely stop the price from falling lower. However, this would still be about a 32% correction from the (B) peak. But on the other hand it is still about a 40% increase in value from the low in Dec 2019 - well in line with corrective patterns. Price is expected to move upwards after this, potentially breaking the resistance seen in the top trend line.

 

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As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!

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