For the longest time the correlation between Steem and Bitcoin has been direct. If Bitcoin goes up Steem goes up and vice-versa. That changed on July 28, and since then their relationship has been inversely correlated. Bitcoin has hit a high of about $3490 recently and now looks to have formed a head-and-shoulders pattern. The reason why I am writing this is because I think that Steem could act as a safe haven if Bitcoin does take a dive, or just a temporary pull back, as Steem looks to have bottomed on the daily chart relative to Bitcoin. I have bought more Steem in preparation, but am providing this as only a source of information; not investment advice. I have been wrong multiple times in the past. No-one knows all the variables or the outcomes they may produce, though it is a near-certainty that digital-currencies are here to stay for the forseeable future.
Steemit is a solid platform and Steem is currently trading at a discount. Because of this it may be seen as a safe haven.
Below is a screen-shot of a chart from Trading View, and shows the inverse correlation.
yeah, good post
Good analysis upvote!!!
Hey there wish you a good luck.. i voted you up plz vote me up too and plz follow me i followed you
A good catch there @crypto-g. Your statement: "Steemit is a solid platform" is the best reason to buy or hold Steem, the next benefit is we can all benefit with it from each other.
Thank you. I am looking forward to seeing what happens with steemit in the future and also in the near-term. It is definitely a hold though no matter what happens tomorrow.
Wow that's interesting, but I do believe that both will go up in near future. I am optimistic that by this year end Steem will touch $10.
I would be more than happy with $3.00 value by the end of the year.
I believe both will go up in the near future, but in the immediate future it is likely that bitcoin is not through with its pull back, and steem is very likely to benefit from it. Bitcoin may not fall far, but it is unlikely it is done. I wonder what the longer-term effect Bitcoin Cash will have on Bitcoin?
Follow :)
Thanks.