The STEEM price is slightly down for the week on low volume, currently resting on recent support levels.
Since last week’s look at prices, STEEM has been in a slight downtrend in terms of both Bitcoin and Dollars. Let’s look at the long-term chart first.
With current STEEM/BTC prices in the 0.000168 – 0.000169 BTC range, the price is sitting right on recent support and at the bottom of the support range that has been a support/resistance line on several occasions dating back to November. Below here, there is long-term support around 0.00015 BTC and the all-time lows around 0.000136 BTC.
The three week chart shows the recent uptrend from the last support levels around 0.00015 BTC. We then had the head-and-shoulders pattern that started its jump at ~0.000169 BTC (blue line), which is where prices are currently. The uptrend line has also been breached as of three days ago. If current prices cannot hold at this level, we may see STEEM revisit 0.00015 BTC.
From the head-and-shoulders pattern last week, we can see a downtrend line (red) that essentially runs off of the right shoulder (black circle). Other than a couple of short breaks of the neckline (blue), the price has been unable to break above it and hold.
Taking a look at the STEEM/Dollar chart, we see a double-bottom (black circle) that took place on January 12th and January 13th at a hair under $0.13 on both days. This began the recent uptrend, but that line has been broken as of yesterday.
The order book on Poloniex is showing heavy selling just above current prices, with a 17+ BTC sell order at 0.000172. Sell orders stack up quicker than buy orders at current STEEM/BTC prices.
Power down statistics this week from Steemdb.com show a continued reduction in divesting. Liquid STEEM has increased by another ~1.3 million, or just over 4% of the total liquid supply. Total vested STEEM has fallen by approximately 800,000. Liquid STEEM now represents ~13.7% of the total supply, compared to ~13.2% last week.
Based on the recent price action and sell orders, we may likely see STEEM/Dollar prices fall back below $0.15 and possibly reach the ~$0.13 support line. If the STEEM/BTC price can hold at 0.000168 BTC and start moving upwards, it may be able to test the 0.000177 BTC range again and even revisit the 0.000186 level and try to break through resistance set by the neckline of the head-and-shoulders pattern and long-term price support/resistance lines.
My guess – which is just a guess, not trading advice – is that we’ll see the price move lower in the near-term. Please read my disclaimer below. Comments and critiques are welcomed.
Disclaimer: I am not a professional advisor and this info should not be used for trading. I would be flattered that you think so highly of my fairly basic analysis, but it would not be prudent to use this for transacting with real money.
*Charts are from Poloniex and Coinmarketcap.com. Analysis is current as of approximately 3:20pm EST, January 24th, 2017.
