After a slight pullback, it looks like support has held for Steem and we are seeing price move to the upside in the monthly channel.
This is my continued analysis on the STEEM/BTC pair on the 120 minute time frame, along with multi time frame analysis to gain some deeper insight into the STEEM/BTC pair.
After reaching all time lows on the poloniex exchange a few days ago support has held and is rebounding upwards in the channel. Steem has been in a steady downtrend for nearly a month and it looks like the bears have finally been exhausted and are no longer pushing price lower. In my previous blog, STEEMBTC A Butterfly Dies.. a Deep Crab Emerges. Reversal Time for STEEM?? I mentioned a Deep Crab has formed which is a nice bullish signal. The Deep Crab, which completes at the 1.618 fibonacci extension, is a nice reversal sign and we often see price change direction once this harmonic pattern completes.
When doing multi time frame analysis I opened the 240 min chart and I found another bullish signal. What I found was the infamous hammer!
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Those who trade Japanese candlesticks know this is a bullish reversal signal and countertrend traders love when they see this candlestick form.
Coincidentally, this hammer formed right at bottom of the downtrend channel and then rebounded which is another bullish signal.
The bulls aren't out of the woods yet.
Price has been in a steady down channel for almost a month which is bearish long term. The saying "The trend is your friend" has been the war cry of the bears of late, and with price trading under the 50 MA on the 240 min, the larger trend still appears down.
RSI
RSI has been trending upwards since it hit oversold territory a few days ago. RSI currently sits at 53.4 and is now above the 50 mark which is quite bullish.
Conclusion
It looks like my long position on the Deep Crab is turning out quite nicely. Support has held and we saw a nice rebound off of support at the bottom of the channel. This combined with the bullish hammer on the 240 appear as if the bulls are finally gaining some control. This case shows the power of Harmonic Trading. Please watch my live trade here for up to date commentary and price and remember to hit the play button on the chart.
Please follow the comments section for updates and continued analysis of the STEEM/BTC pair.
Disclaimer
This is for educational purposes only and is not financial advice.
Harmonic Trading was invented by Scott Carney.
