I REMAIN BEARISH!
My bearish call on STEEM and BITCOIN have been a pretty good call so far. Looking at my new chart, I believe STEEM is going to break out either up or down as you can see above. Triangle patterns are usually very informative and accurate. At this moment, even though I have a bearish bias, I would be very cautious because anything could happen from here. But since the market usually moves against the popular consensus and opinion, and since the popular opinion at the moment is buying the dip, I would not be surprised at all to see the price break down even further. below the new green line.
FIBONACCI RETRACEMENT - STEEM/BTC
Having a look at Fibonacci retracement on STEEM/BTC's daily chart, price is now between the 50% and 61.8% retracement of the rally that started back in March this year. Healthy corrections in a bullish trend usually retrace between 38.2% and 50%. Anything less than that causes worries because the price would moving up too fast, and anything more than that would also cause worries since the price would most likely be making lower highs and lower lows which would signal that the market has topped and a new bearish trend has started.
THE BEST CASE VS. THE WORST CASE
The best case for STEEM is that it will eventually break out of the triangle and will continue the bullish trend that started in March this year. In this case, I would expect to a new high above the previous record which was at 0.001 BTC. The worst case is that STEEM will break down and will continue the bearish trend in which case I would expect to see the price go back to March lows at 0.0001 BTC. I cautiously favor a break below the green line but I could be wrong. However, I will certainly not be a buyer unless I see the price break above the red line in my chart for at least a day or two!
MR. OPINIONATED!
Please be advised that trading cryptocurrencies comes with a high risk and any opinions, research or other information contained in my posts is provided as a general market commentary and opinion only, and does not in any shape or form constitute investment advice. I will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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