STEEM: Trading Range Getting Tighter, Where to Next?
If you look at the price of STEEM / Bitcoin in the chart below, we've seen a double bottom occur recently around 0.00022 / BTC in the past several weeks. This chart is from the cryptotrader app on the iphone. I drew in the support and resistance lines in powerpoint and screen shotted it to create the chart
Some may predict this means that we've reached a critical level of support which will be very hard to breach because buyers swoop in around this price as they see it as quite a bargain.
However, we also can't ignore the fact that we've seen lower highs over the past several weeks (this is definitely not a good sign) as the trading range gets tighter. The descending wedge pattern, in my experience, does not usually end well for the price of an asset in the short term.
I've seen some predict that STEEM will soon breach this level of support and I can't help but agree that this is a valid argument given the lower highs. One such example is a scenario laid out by @ew-and-patterns in this post below recently...This user has a pretty good track record of accurate predictions and I could see the scenario proposed in this post come to fruition in the near future.
https://steemit.com/steem/@ew-and-patterns/steem-update-15-09-17
If it does happen and STEEM drops to 0.00016 / BTC I'll be buying a lot more STEEM on top of what I've already added since it's been in the 0.00022-0.0003 / BTC range.
So the other scenario is the 0.00022 level holds and we eventually break to the upside but I'm not sure how likely that is. I'd be happy to hear other people's predictions for where STEEM goes next...
What do you think?
Does it breach the 0.00022 level and drop lower?
Does it continue to consolidate in this narrow range we've seen the past couple of weeks for quite awhile (at least a few more weeks)?
Will it break above the descending red line of resistance in the chart I annotated and move up from here?
Note: you don't have to have in depth knowledge about technical analysis to answer me here. I'm interested in anyone's input. Also, please do not take this as investment advice, I'm not a financial advisor, and following my decisions and investing strategy could lose you a bunch of money so please do your own research before putting money into any asset!
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I think the support will probably break because there hasn't been much of a buzz around steem lately in the wider community which is definitely an excellent time to buy
I could definitely see that happening as the bounces off the support line have been smaller lately. We haven't seen any really good volume days as far as buying is concerned since mid to late August. I guess a lot of people are chasing other coins right now.
I'm personally bullish on steem, but dropped every spare cent into bitcoin trying to find the bottom (successfully).
Anyone need a kidney?
Lol yeah I've been playing that game of catch the falling knife this week with BTC and ETH as well. I've reached my personal spending limit for cryptos this week as well.