The STEEM/Bitcoin pair (STEEM/BTC) managed to go as high as 0.00099998 on June 9, 2017. Unfortunately for buyers at this level, STEEM has been dropping since. In fact, it nosedived to 0.00009202 on December 6, 2017 and lost over 90% of its value before generating a notable rally. The good news is that this downtrend is about to come to an end.
Technical analysis show that the pair is creating a large symmetrical triangle on the daily and weekly charts. From the looks of it, it may appear that bears have the upper hand because there’s a significant gap between the B and D waves. Other traders might interpret this as the inability of bulls to put together an impressive rally.
In reality, this puts more pressure on bears to come up with another lower high that’s so close to the support. Right now, bulls are creating a higher low setup at 0.00016. If they succeed, it will not be difficult to take out 0.0002 resistance and breakout of the symmetrical triangle.
The strategy is to buy the breakout at 0.0002 after the market generates volume of 100,000 STEEM units. Bears will try and fight for market control. The market needs buyers to absorb the selling pressure.
Take out 0.0002 and we have an initial target of 0.00042.
The process may take a month.
Daily Chart of STEEM/Bitcoin on Poloniex
As of this writing, the STEEM/Bitcoin pair is trading at 0.00016279 on Poloniex.
Summary of Strategy
Buy: Breakout of 0.0002 with volume of 100,000 STEEM units.
Stop: 0.00018 after the breakout.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.