Hold onto your hats! Next few days are wild!

in #money8 years ago (edited)

Hold onto your hats!



That's the best advice I can give.

On July 21st the ETH hardfork will return DAO funds to investors.
http://www.coindesk.com/hard-fork-ethereum-dao/

Most of these investors can rightly be expected to be scared, upset and angry with ETH. Logically they should be primed to leave it for safer waters.

FACT: SBD & Steem are the perfect safe havens for these investors who were burned by ETH.

BTC is currently the #1 coin, with a market cap of $10.5B USD.
ETH is currently the #2 coin, with a market cap of $963M USD.
STEEM is currently the #3 coin, with a market cap of $386M USD.
DAO is currently the #6 coin, with a market cap of $132M USD.

Assuming only DAO funds are turned into Steem and BTC as most speculators are claiming; the price of ETH would lose over 13% of it's value, but STEEM would rise 34% and BTC would see 2%

In otherwords it might look like this...

But take it from me, that almost NEVER happens!

Most trading is performed by bots, many of whom are incredibly simple minded and aren't programmed to handle what's really going on. The default stop loss on most bots is around 1-2%. This means that when ETH price drops by ~1.5%-5% there will be a mad rush for the exit as bots race to close their positions out. They will cash out and then park it until the MACD cross or Stochastic Oscillator indcators show a reversal of fortune.

This could easily have the effect of triggering a catastrophic collapse in ETH price, pairing it back by as much as 50 - 75%.
That much capital flowing out of ETH would trigger a mass outflow from most other coins into cash and cash like instruments such as bitUSD and SBD as the herds stampede for the exit. This would look like mass panic, similar to what happened when the DAO was hacked and shaved 50% of the ETH price over night, triggering total capital flight from crypto for a few days.

The bitUSD orderbooks do not have sufficient depth to cover it, neither do SBD books, so now is a good time to earn some free money by positioning to meet the impending USD demand.
Less informed investors will accept lower and lower offers as they try to hedge into something.
If you have SBD it's likely you will be able to sell it for upwards of $2.00.

You need BTS to make bitUSD and Steem to make SBD. An increase in demand for these should drive the price of Steem northwards.

Once the hardfork for ETH hits, the exchanges will stop ETH trading until a clear winner emerges from the forkening.
This alone will drive bot trading interest in Steem.

It's safe to say the climb will continue to $5.00 maybe even $5.50 for Steem while this is happening.
Once the major exchanges turn ETH back on, the mass panic out of ETH will help Steem prices for a bit, but it is likely to end in a dip into the mid $3.00 range as profit takers take their profits and the bots crap out from the sudden and sharp direction changes.

After that it will bounce around every couple of hours for the next 3 to 5 days gaining about 5% off the floor of each bounce and adding 15% from the midpoint to the high. This will be punctuated by long periods of flat charts..

Stochastic RSI is a useful indicator if you're quick. It should allow you to capture 85% of each directional change. Just keep in mind zipfs law, 20% of the activity drives 80% of the results, ergo a 2% increase in price will generally end in a 10% increase before dipping slightly into it's new range.

In the end I believe that by Friday, Steem will be around $10 USD and SBD will be around $1.10

What do you think? Do you agree it's choppy waters ahead? Or do you think it's only blue skies to the moon?

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Interesting analysis. I am very curious to see what happens to the others brainchild of Steemit creator Dan Larimar... Bitshares!

At the very least, there will be a new #6 on the list very soon.

Should be interesting, choppy waters indeed. I feel that some DAO holders are going to move into Steem. You can't miss the movement on coinmarketcap and there may be some FOMO. I sold my DAO two weeks ago and bought Steem. I am feeling ok with that.

You can watch the fork happen live in real time right here...
http://fork.ethstats.net/

we will see, exciting times now, hold your steems!

Personally I think you have a point here - invest in Steem and see what Friday brings....£££££ i hope...

I agree, Steem and SBD are about to catch a lot more rocket fuel. Even rockets shake on liftoff!

Yes choppy, but holding tight. ◕‿◕

They will sale all of their DAO and trade it back into Ether is my thought.

Not sure about ETH and the DAO but these words are sweet!

STEEM is currently the #3 coin, with a market cap of $386M USD.

Whoop, whoop!

CG

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