Steem has been trending sideways for the past few days and has been consolidating within the range specified by the rectangle on the chart below.
This analysis is done on the STEEM/BTC pair 120 min, on the Poloniex exchange.
If you have been following my previous analysis on this pair, you will know I took a long position on steem after the completion of the bullish deep crab. This, combined with price finding support at the 1.618 fibonacci extensions and 1.272 fibonacci projection, provided further evidence for my case to go long.
Case for the bulls
Although the price of Steem has dropped significantly in the past few hours and is retesting previous lows in the PRZ or potential reversal zone, price appears to be holding near fibonacci support at the 1.618 extensions and could be setting up a nice Type 2 harmonic trade (Please fast forward to 7:50 on the video to learn about a Type 2 setup). Price is currently retesting the lows at the previous completion of the deep crab and if support holds here this could be a nice reversal point for the Steem bulls.
Case for the bears
Steem still continues to trend in the month long decending channel which is quite bearish. Every time the bulls try and push price higher the bears quickly shut them down. The price of Steem is currently trading under the 200 MA and 50 MA on the 240 min chart, and has recently dipped under the 50 MA on the 120 min timeframe which are bearish indicators.
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RSI
RSI showed a trend line break of support earlier today, which coincided with the dip in price. I could see RSI dipping lower with price and will be looking for bullish confirmation once RSI finds a bottom and starts turning upwards again.
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Conclusion
As the bears and bulls continue to fight it out in this range I will be looking for the bulls to break the 0.236 fib near the 0.0028 mark for confirmation of a bullish reversal.
If the bears push price lower than 0.00225 BTC I will be looking for the next bearish target, near the 0.00177 BTC range at the 1.618 fibonacci extension. This might be a good area to buy cheap steem if the bears can push price here.
Please feel free to question, comment and post charts in the comment section below. Also, watch my live trade play out here in real time.
