I Believe Steem Will Hit $50 This Year
When we look at Steem trading at $4.40 today, $50 may seem like a pipe dream for any long term hodlers on Steemit. However, we will find that Steem, like Bitcoin, is in the 2nd wave of a long term Elliott Wave cycle and $50 by the end of the year is entirely possible.
Before we get into the charts, let me state what my main point of optimism is for such a price target. We are only this year entering the early adopters phase for digital assets. That means that currently 1-3% of the population is invested, and another 10-12% is looking to come on board this year.
If you’re like me, you are not looking to sell your assets anytime soon. That lack of selling is only going to put more buying pressure on a market that is adding hundreds of thousands of new customers each day.
Now, let’s look at some charts and talk abut the price correction bitcoin is undergoing right now.
I am using dots on our charts to symbolize the ABC correction points.
You can see that bitcoin has a point A that bottomed at $12,000, from which it corrected to point B at $18,000, and is currently sitting at point C around $10,000.
We may see bitcoin sneak under $10,000 for a bit, but I believe we are about done with the 2nd wave correction and our ABC pattern.
Steem has seen a similar correction from 52,000 satoshis down to 35,000 for point A. Point B touches around 41,000 satoshis, and point C hovered around 33,000.
There are a couple items I wish to point out in Steem’s chart, and those items are the volume candles that I have arrows on.
Whenever I see volume candles that big, it is impossible for me to ignore. What that tells me is that somebody is accumulating A LOT of Steem before the price moves. As you can see in the chart, the price doubled right around the time of the large volume candles.
Coupled with that large volume is the relatively quick recovery that Steem has had.
While bitcoin is still finishing its ABC correction, Steem is already moving up from its own correction. This is very bullish to me, and shows that a healthy wave 3 move to the $15-$25 range is in order here in the spring.
While we will likely have a pullback in the summer to early fall for the 4th wave correction. Our last wave ought to carry us to $50 as Steemit continues to grow and the SMT tokens begin to gain traction through the year. It is going to be an exciting year!
That's a very bullish call certainly can't go against you, what would be the price of SBD when Steem hits that price?
It would really be some good time with that price
It would be incredible if SBD is allowed to trade freely on the markets and the hard fork change does not go into effect. That may happen for a couple more months yet, but I don’t see that continuing much longer than the Summer to early fall - we need a stable currency to appeal to businesses.
Seems like more folks are calling for lower SBD...closer to the peg.
Yes, I am hearing that a lot. Probably be a few more months till it happens.
I think you are on the right track here Lydon. As far as the SBD peg is concerned correct me if I am wrong but parity with $1 for steem/sbd was that it will not be allowed to fall below $1 within a few cents That is what made it a such good investment. You could not lose your initial capital.
There was no mention in the white paper about upper price positions as far as I recall?
The market would decide and it is doing just that.
We all know that steem is way undervalued. Good projection @lydon.sipe
Great point @molometer. The original intent of keeping the SBD price within a few cents of $1 worked well. The white paper does not say anything about prices over $1, and the market has responded to the limited supply. We’ll have to wait and see what the market and the community decide for the future.
Well in view of the limited supply of SBD we have an interesting few months ahead :) The community must decide of course but hopefully we will have an equal say as the whales. Not holding my breath but why wouldn't they encourage growth? Tip!
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That's a good point, from the stand point, I rather see SBD free and let the market determine its value, I believe the spike also help maintain the price of Steem as people would more readily hold unto Steem rather than sell, as for traders, its also good speculative instrument, even now I don't mind buying and speculating on it, so its a win win game for everyone, eventually it would plateau as the market has been flooded with SBD over the last couple weeks...The free market always find a balance, let things be dynamic
That would be great! I was happy just to see it almost go to $10.
So we’re a lot of us, lol. We had been lagging the growth of the overall market for a while. Now we seem to be outpacing it.
a good, clear post , Lydon, that answered my question of a while back as to why you foresaw a $50. SBD. You made me a believer
I’m glad it was clear, John. That was what I worked the most on.
Thank you for all the work that you did for this post. Seems like it is time to buy some Steem !
You are most welcome. I enjoyed pulling the analysis together. Steem is a good buy right now.
Thanks for this analysis for us trading dummies...
😄😇😄
Glad you found value in it. :)
if steem hits 50$ ( which i hope so :P ) we all gonna make a lot of money :P
And the rise has only just begun. :)
HODL ON FOLKS :D
Lol. :p
Yo are right. I am sure that it will pass 50 if all goes well with the updates. Everythung is possible in crypto space. Thanks for sharing.
You’re welcome, my friend.
i Think SBD will hit 100$ if , Steem arrive to 50$
Steemit have a great Project & i believe only Solide Project will survive in Future :)
To the moon!