STEEM/BTC - We need to bounce here!

Steem MUST hold this area to prevent further downside!

As I stated in my last STEEM update, it wasn't looking good in the short term and I did expect a break down out of the ascending channel. I kind of had the feeling the mini blow off top we had on Sept 24th was a precursor of things to come. I also stated that it must hold this area where its at now or we could be in for some more significant downside.

Right now we are currently being held up by the .618 fib retracement area which is your make or break zone for any signs to avoid more bearishness in the near future. We are also making lower highs and lower lows lately which is not good. We need more demand at these levels which were currently not seeing. There is literally no volume whatsoever. This looks like it will break the level where its at now honestly. Our last hope is to bounce off that long term diagonal trend line (blue dotted line). We broke it with great volume in mid Sept, which was excellent, but now we must prove this wasn't a fake out and hold that line! The area also lines up with the 78% retracement so I do think we will bounce from there, even if its a tiny bounce. The area ranges between 1175 and 1130 SATS. Like I've been saying over and over, we need big volume at that area when we head down there or we are going to your previous swing lows at 1043 SATS again or lower.

From a more in depth perspective, none of the oscillators are giving you any hope this will bounce. RSI is near 30 and your MACD is about to crossover into negative territory. We could see a bounce when the RSI hits 30 because we have bounce off it numerous times besides the time we made our previous swing low when we dipped to 15. Your daily is at 45 on the RSI so we could retest the 30 as well which would probably lead to a new swing low most likely. A bounce from here would make me a little bit more optimistic because this area is at a critical horizontal support zone, so that would be great. We are also sitting right on top of your 200MA which is laying right on the .618 fib.

We still have time to turn things around though. The window is small, but we have a few outs. We must bounce at this area (1285 SATS). If not this area, the long term diagonal trend line. Those are the only two possible scenarios we can put together to avoid the bears. All we can do now is hope for some demand to kick in.

Good luck!