After reaching new lows Steem has rallied off of fibonacci support and has found its way back into the descending channel.
This analysis is on the STEEM/BTC pair on the 240 minute timeframe. Data provided by Poloniex and charted in TradingView.
Previous Analysis and Reflection
In my previous analysis I mentioned I was looking for price to fall into the Fibonacci Support Cluster 3, and then I would be looking for a reaction to the upside. Well, price did fall to that level, and we saw a beautiful reaction to the upside. A whopping 41% at the time of this writing.
Steem price even found its way back into the descending channel and reached the top trendline of the descending channel. Upon reaching this level we found some trendline resistance and I am curious to see if price can breakout to the upside.
Case for the Bulls
Higher Highs
After a week of lower lows we finally have "higher highs". This is a much needed sign for the bulls.
The Descending Channel
The price of steem has found its way back into the descending channel and even broke out momentarily.
RSI
On the daily RSI is still oversold and has plenty of room to move up.
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Bullish Engulfing
@jamesbrown brought it to my attention that a bullish engulfing candle was forming on the daily chart. This is a bullish sign.
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Case for the Bears
The Trend
The trend has been down for quite some time. The bulls need to break out to the upside of the descending channel for a clear trend reversal. Until that happens the bears appear to be still in control.
Trendline resistance
As the bulls pushed price up, steem found some resistance at the upper trendline of the descending channel.
RSI
RSI on the 240 minute timeframe is approaching overbought territory. The bulls could be running out of steem here but we still haven't reached overbought territory so this remains unclear. This is just something that I am noting.
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Conclusion
All in all, it looks like today was a nice day for the bulls and they might finally win a daily candle. The price of Steem rose significantly only to be shut down by the upper trendline resistance of the descending channel.
Lets see if the bulls can push price out of the channel and finally breakout or if there is profit taking here and the bears push price lower in the channel.
If you're interested in why, the punters dumped Steem yesterday to chase Monero - and returned to STEEM when Monero's rocket ride sort-of made a 180.
Good point.
Thanks! Actually, STEEM's enjoying a rocket ride of its own right now: i'ts hit 0.001947 as I write. Sad in a way, as the buying opportunity is gone...
I don't think the buying opportunity is gone quite yet. A pullback here is natural, it might be a good time to buy when price finally breaks out to the upside of the channel.
Makes sense. Monero has been exploding lately!
Sure has! But it's been having a bit of trouble since it hit its all-time high before midnight Eastern time. I saw a lot of speculators using the jumps to abandon their ship, and lots more whacking the buybook by dumping.
I also saw a whale put in a 400 BTC buy (!) at 0.016 this morning - and it was gone less than a minute after XMR hit its price. (!!) I wonder how he feels now..
Damn!!