Is Steem Heading to $10 Now?
Will you look at Steem candlestick charts with me as I'm trying to analyse and see if Steem is now in an uptrend and heading to $10 like Steem Dollars just did.
This blog post is an analysis I am doing for my own trading education. I am not an expert or financial adviser in cryptocurrencies. I am a student of the Cryptocurrency Trading Course by Digital Currency Trader that you can join to learn with me. Use my special discount coupon code "michelsentme" at check out, I will get a small commission and you will get a 20% discount.
Is Steem Heading to $10 Now?
We have recently experienced a huge increase in value for the Steem Dollars, which has reached $12, while Steem has had a more timid move upward in value. What I'm going to do is look at several candlestick charts on Bittrex from one year to 3 days with different time intervals and attempt to identify an uptrend.
1 year chart with 1 day candles
The first chart is for one year and shows 1 day candles. What I did first is drawing support and resistance lines during the year, because it is much likely that price is going to stabilize for a while at these levels.
The good news is that we are now far above the lowest low line, which was 0.00005309 BTC and flirting with the 0.00012577 BTC line. We can see that there has been a huge increase in volume for December, which is great. The moving averages that have been in a downtrend seem now to indicate that it's going to change direction. We are still seeing huge sell pressure with the long upper candle shadows.
3 months chart with 12 hours candles
This chart is for the last 3 months and uses 12 hours candles. We still can see the support and resistance lines I drew from the 1-year chart.
Steem has been moving down for several months and the trend has changed in November to move sideways, which will continue, I think, until the end of the month. It is clear that we have crossed the 0.00012577 BTC line.
We can see clearly that the volume for December has increased significantly and the moving averages are reversing slightly. The Steem price is now at 0.00013600 BTC, which is $2.59 USD on Bittrex.
Notice that there is a lot of selling pressure for December, with very long upper shadows, which is why it has been moving sideways.
1 month chart with 4 hours candles
This chart is for the last month and uses 4 hours candles. We still have the support and resistance lines I drew previously and we definitely crossed the 0.00012577 BTC line.
The market has been moving sideways for a month and the moving averages have been crossing each other a few times. The upper shadows on the candles show clearly the selling pressure on Steem. We now have higher highs and the moving averages are showing an uptrend.
5 days chart with 1 hour candles
This chart is for the last 5 days and uses 1 hour candles. We see clearly that the red resistance line is now “support” and we are definitely far over the 0.00012577 BTC line.
I like the 5 days chart with 1 hour candles because it becomes very clear. I can see three 1-2-3 bottom formations in a row, which suggest that an uptrend is starting.
The moving averages have crossed (red arrow), and move nicely upwards. We still have selling pressure and some indecision and I believe Steem is going to move sideways for a while. It might correct to the 0.00012577 BTC line, but we are now in an uptrend and it will get higher and higher.
3 days chart with 15 minutes candles
This charts is for the last 3 days and uses 15 minutes candles. I can now draw 2 uptrend lines and it seems it's going to continue moving between them.
The moving averages are going up nicely and it doesn't look that they are going to cross any time soon. The Stochastic RSI shows that Steem has been more overbought than oversold lately, which is good. Volume is good with a healthy level of buyers.
Seeing these results, I'm happy and unhappy.
Happy because, of course, it's going up and the 2,000+ Steem Power I have are increasing in value. Happy because as an author on Steemit, my rewards have more value.
Unhappy because Steem is now more expensive to buy for a long-term investment and there is no sign that it will dive again to $1, where it would be awesome to buy.
Nevertheless, I think it's a good time to buy Steem now because it might reach $4 before the new year.
Would you please let me know if you agree or disagree with my analysis for Steem in the comments?
Update: 22 Dec. 17
5 months chart with 1 day candles
The price went as I predicted it will go and it seems that it now reached a level of resistance where it's going to fall a bit before continuing its uptrend. The moving averages are still crossing and we see clearly the reversal of the trend and more volume.
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