Steem is below $1, Is it the right time to buy Steem? No! here's the reason

As you know these days crypto market is under a heavy correction and Steem's price is also much lower than how it used to be during the last couple of months. While writing this article Steem is valued around $0.995 and traded around 0.000484 BTC in Poloniex.

I noticed some Steemers with heavy list of followers are encouraging others to buy Steem while it's cheap, but I think these claims are not backed by any understanding of the market. I don't usually write about trading because I don't consider myself an expert in the field but I believe my view of the current situation is shared by many of the experts that rightfully exited the market as early as weeks ago and there are good reasons for that.

Why Steem is getting cheap?

First of all to understand why Steem is cheaper now I should say that it's mostly related to Bitcoin. Bitcoin's price is being corrected heavily and since Steem is only tied with Bitcoin it will go down naturally. Other cryptos like Etherium Classic or Lite Coin which are also traded by USD are proved to be more stable during the last couple of days.

But even so the price of Steem is getting cheaper and cheaper compared to Bitcoin. A Steem was valued about 0.0007 BTC until last month but it is around 0.0004 BTC these days. That is mostly related to the problems with the biggest exchange Poloniex which currently blocked Steem's trade for technical reasons. This issue is expected to be temporary but might extend until the next couple of weeks or months.

Why it's not a good time to buy?

Considering that bitcoin's correction is an important cause, most of the experts in the market believe the correction is not finished. As you can see in the image below bitcoin's rise during the last months was too fast and it need this intense correction to get back to its own pace which I indicated with the green trend line. based on the previous resistance line and current bearish trendline we can expect to meet the support of bitcoin around $1300 which with current relation of Steem to BTC we can expect a Steem price of $0.624 in the next days or weeks.

The proof of that is the market cap of all crypto-currencies which is shrinking every day. Since last week the market cap is shortened from $85 billion to $72 billion today. More than $13 billion dollar is exited from market and you better believe there are smart investors out there which wouldn't hold until the correction is finished.

Also to be fair, many believe that we are going to meet the support of bitcoin around $1600 which still would bring the value of Steem down to $0.774 which is still much cheaper than $0.995 today.

Don't take my advice for it, do your own research. But don't listen to bitcoin fans which instead of reading the charts will tell you it will go to moons. They are too emotional to give you the information you need to have a safe investment.

So it's all your decision. You can buy today and lose the value of your money every day, or buy when the correction is finished and have more Steem with being a smart investor.

If you agree please re-esteem to spread the word. Thank you :-)