STEEM: Time to Accumulate?
Summary
STEEM has broken the uptrend support on the daily time frame, and pulled back to the 0.618 Fibonacci Retracement level around 31,000 Satoshi. A potential Head & Shoulders is forming, which could drive STEEM prices lower. A break below 30,000 Satoshi (0.0003 STEEM/BTC) is in play.
Chart at tradingview
What Happened
The general crypto market is edgy currently, with ETH & BTC leading the dip in prices. Much have been speculated that the ETH dump is due to EOS team
Eos is dumping all of their coins on Bitfinex. If you look at this dump, ether is leading the way... Bitfinex was trading $30 lower than any other exchange during todays dump (to a low of $492, other exchanges didn't fall below $510). EOS started transferring their Ether to Bitfinex about 3 weeks ago. They have transferred over 1m ether so far. There is only another 200k ether left in their crowdsale wallet. The date at which they transferred their ether to Bitfinex and when we started crashing line up almost perfectly.
Once this wallet is empty the bear will likely be over. 20% of the funds remain in it. They will likely be dumped over the next few days as well. I would expect us to keep dipping for another few days before we bottom out and start heading back up again. Also, there are many users who want to get EOS for their mainnet launch. Once this occurs, ether will likely rebound hard.
You can track the wallets and transactions on this page.
As the mainnets of EOS and Tron are nearing completion, their tokens, which were once ERC20 were be swapped for their native tokens.
Outlook
Bearish
Looking at the chart of Ethereum, prices could drift lower to under $500, likely slowing down around $490, which is the downside target of the head and shoulders formation. This would also likely bring down altcoins.
Call to Action
30,000 - 32,000 Satoshi is our accumulation zone for STEEM. Any lower is a screaming buy for us.
What are you thoughts on STEEM and the crypto market? Will we see a continued downward pressure? Or prices cannot be any lower, and the next leg of bull cycle is upon us? Do leave your comments Steemians.
Disclaimer:
This is my personal view. I am not a financial adviser nor affiliated to any investment advisory. Your decisions are yours and yours alone. Do not listen to hear-say. Do Your Own Research (DYOR).
I always like to accumulate $STEEM at 32,500 Satoshis level. Thanks for the write-up bro!
Then there's no better time. Now you get more bang for your buck.
Long Live the blockchain. Long Live $STEEM.
I been thinking about that eos dumping their eth. So it had already happened. But then again, it’s not a substantial amount that can cause the big dip these past week. Could there be any other bigger negative news?
1M ETH disposal by the EOS team is substantial, especially if they didn't do it OTC.
It could also be very likely that speculators who bought pre-Consensus expected a rally post event, but that didn't occur (mentioned in my previous article in "What Happend" section). Hence the covering of long positions.
But pull-backs are always good for value investing. The last few days were great for accumulating for longer term plays.
Like in the stock market - correction happens sooner or later. It is healthy situation and we can rest assured that we are not in the bubble anymore
@cierek We believe cryptocurrencies are far from bubble territory. The first time it was near 1 Trillion market cap in January - maybe. Now we're at about 1/3 of that market cap.
And you're spot on, on corrections being healthy for the long term growth of the sector. Good time to be accumulating projects you believe in like $STEEM! Cheers.
Coins mentioned in post:
Congratulation mrshev! Your post has appeared on the hot page after 12min with 26 votes.
Thanks to @souldelas.