I've lived through and analyzed multiple financial collapses. Rest assured that the "massive" selloff in the STEEM cryptocurrency is not one of them. Yes, I know it looks bad, but hear me out -- using basic scientific methodologies, we can assure ourselves that this is nothing more than a correction.
In market theory, a correction is the unwinding of extraordinary bullish activity. All publicly-traded assets go through this phase, and it actually reflects a healthy market. For example, this is the reason why we have a digestive system. As great as that filet mignon tasted, you definitely don't want it in your system forever.
A correction, therefore, is similar to defecation. In sharp contrast, a collapse is like diarrhea. You stuffed yourself silly with a mixture of sugars, salts, and fats, then caked it all in alcohol. Your tummy protests by explosively excreting all that junk from your system.
You do not have diarrhea!
Just a Correction, Nothing More!
Indeed, it would be strange, then worrisome, if you did not defecate at all after enjoying a hearty meal. Just as you would not be alarmed by taking a long whizz after drinking a gallon of Gatorade, you should likewise avoid panicking on the STEEM cryptocurrency.
Let's transition away from the biological examples and explore the scientific basis as promised. For this analysis, I will be looking at the STEEM price in USD, but converted to its base-10 logarithm. This enables an "apples-to-apples" price magnitude comparison.
When the Steemit platform was initially launched, the STEEM cryptocurrency took off like a bat out of hell. Using standard physics, we can calculate that the STEEM logarithmic velocity was 0.59 points per week. However, in the second major rally, STEEM had a much slower velocity of only 0.12 points per week.
That's a difference of 392%! No wonder why STEEM collapsed during its initial run-through. Steemit was simply too much, too soon.
Major Buying Opportunity
During a collapse, it's rare for an analyst to recommend buying the bleeding asset. No one really knows the depth of such volatility. But a correction is a normal dynamic within the market cycle -- these are dips you should buy, if you are confident enough.
From the evidence at hand, STEEM is going through a corrective period as a means to consolidate prior massive gains. In the three weeks since STEEM hit its first parabolic peak in 2016, the cryptocurrency felled 70% in three weeks. In the current phase, STEEM has only dropped by 32% in three weeks. Yes, it's a hefty loss, but it's a ton-better than -70%!
In other words, STEEM this year has taken its time to rally to nearly $3. And it's comparatively patient in the downside as well. Over the last several hours, I have seen the price gain back 20%.
Just stay patient, and this correction will go away sooner rather than later.