The Steemfest Sell Off? - The Price of Steem Still Doing What it's Been Doing
The price of steem continues to languish against the USD and is pushing lower against BTC.
I know people are excited about steemfest in hopes it will be a catalyst to a rally, which I suppose could still occur, but as of right now the price action paints a different picture.
The Grind Lower
Yesterday on the Music and Money Show I talked about the price action of steem during the crypto market check segment. Take a look at the chart below...
We may have a problem...
In prior weeks I discussed how we really needed to hold that 25K-ish satoshi level otherwise we would likely test the 17K support and then much more established support of 12-13K if steem breached 17k.
The Good News:
- There is alot of support at 12-13K, you can see at least three instances of it circled on the chart.
The Bad News:
- We are indeed about to test it....price at time of this post is 13.4k (0.000134).
What Next?
Well, either Steem will finally bottom out and hold 12k or we are headed for the all-time lows of 5k satoshi.
What we need to see is the tone to change in price action. The price action has had a negative tone for more than a month now and really hasn't shown much bullish price action since the all time highs in June.
A bounce here would be great, but it won't mean much if it's short lived. We need more than a blip to change the price action from negative to positive.
Catalyst?
A catalyst is needed - and it's not just for BTC to stop ripping. That might ease the downward pressure a bit, but it won't lead to a total change in sentiment. What is the why for Steem to go up? What will bring money into the steem currency? I know about SMT, steemfest, etc. Is that the answer?
The USD Debate
Since I know there is at least one person saying, who cares about it against BTC, all the alts are down. Lets' take a look at Steem vs. USD and see if things look better.
Looks are deceiving
That chart looks quite a bit better than against BTC. However, would you call this chart positive price action?
We are at a pivot point against USD. It has been holding the support of this range we are in. However, it also has just been riding it the past few weeks.
Usually when you get a test, you get a bounce off the level. Hence the test. Steem looks like it's continuously testing the support. The price action is dead at the moment.
If steem breaches this level then a test of 75 cents is in the cards next. After that, look out below.
Here's Hoping For a Shot of Energy
The price of steem against both the USD and BTC need a shot of life otherwise this could get a bit ugly. I'm rooting for a bounce so much so, but also have to keep my eye on what the charts and price action tell me.
Some things I use:
- https://1broker.com to trade stock and currency using bitcoin
- https://bitconnect.co to earn daily interest lending bitcoin. (only use speculative money)
Best Regards,
Disclaimer: All content in this post is my opinion and for informational purposes.
I hope it is not because of recent EOS rise.
I didn't even think of that. It probably isn't helping. Lot of steem folks have invested in EOS too.
The only catalyst for entire crypto market will be the 2X fork.
There is no point at analyzing or waiting for anything else at the moment. The bitcoin rally has sucked out all the liquidity from the altcoin markets as most speculators/traders have boarded the bitcoin train to get "free" coins during the fork.
Post-fork, bitcoin should fall and the major altcoins, includung Steem, may start to rally hard.
Yup, I have been buying some of the other alts (NEO, LTC, etc) at a discount leading up into the 2X fork. Trading BTC is useless...its a freight train higher until the fork.
Not a very good looking chart. Hopefully after BTC cools down, Steem will rise again.
Or at least stop going down, ugh.
This post received a 10% vote by @eternal.witness courtesy of @Kubby from the Minnow Support Project ( @minnowsupport ). Join us in Discord.
Upvoting this comment will help support @minnowsupport.
A catalyst for a change in sentiment and price action?
I know what would ease some of the long-standing criticisms against Steem and Steemit, Inc., but it seems that nobody within the “leadership” around here wants to take this issue seriously. And that issue is this:
The initial launch of the blockchain and the mining of STEEM.
There’s somewhere around 50% or more of the total supply being held by a small group of people who have demonstrated three main things: 1) They’re willing to change major blockchain protocols on a whim, 2) they’re willing to dump their holdings even at low prices, and 3) there’s an apparent lack of competence in running a social media company, which just happens to be the flagship product/concept for Steemit, Inc. and the Steem blockchain.
The catalyst for major changes in perception - which continues to be the problem with Steem/Steemit - could very well be eliminating a very large portion of Steemit, Inc.’s STEEM holdings. Burn a vast majority of the stake in their @steemit, @steemit2, @steem, and all other associated accounts. The purpose for having that stake in the first place was for large-scale account creation, which is no longer needed with delegation and other soon-to-be implementations expected in HF 20.
As long as the supply sits at 260+ million STEEM and as long as Steemit, Inc., Dan, and their friends control 50% or more of that supply, future investors will face much larger risk with little potential for reward and the perception of unfairness or impropriety will continue. New logos and color schemes, hoping for some magic app, or creating thousands of shitcoins isn’t going to change that. This needs to be taken seriously and there needs to be some willingness to even acknowledge this by Steemit, Inc. - and that’s the one thing that they essentially refuse to acknowledge...still.
Very good point. That amount of supply and that size of supply being control by a small few is similar to dealing with centralized banks.
And yes, since delegation has greatly aided with new accts, the proof of stake, if you will, for those accts is diminished and not nearly as justified.
Something has gotta change.
Im a buyer at anything under a dollar.
Its' a good risk-reward ratio at least, good luck man. Hopefully be bounce back to the top of the range :-)
Yeah for real, I'm a long term believer in this platform. Hard not to buy anything under a dollar.
I suppose a lot of people who were attending steemfest, knew 6 months ago they'd be needing some funds and powered down to bankroll their trip there, while they are there, and to leave a little extra when they get home.
I expect that coming into the new year, we're bouncing back to $1.20 again as people start looking at their wallets after powering down and miss the days where it was looking better. :)
We'll have to see..
Yeah, post steemfest should at least ease that selling pressure. Coupled with the segwit2 passing a week after that, hopefully that equals relief and a bounce.
What are your thoughts long term? Still a good investment?
I think yes, but I don't have any TA skills.
Yeah it's a depressing topic yet one that requires discussion. All of us here will be aware of the utility of steem on this platform but if your capital investment is eroding away, it doesn't make for a good business case to invest for the generation potential on steemit (unfortunately). Many folks are watching this one keenly. Thanks for the update @scaredycatguide
I'm not going to worry about it until after the BTC Fork, and probably not even then. I'm just going to take my opportunities as I can here and continue to Steem on. Like you I am holding NEO and LTC and a few other Alt's hoping for a good return off of them post Fork so that I can create a good position in EOS, but now even that is coming into question. 🤔
Sounds like a good plan to me! I'll take the discount sale on the alts leading up to segwit fork too.