After reaching new lows Steem has rallied off of fibonacci support and has found its way back into the descending channel.
This analysis is on the STEEM/BTC pair on the 240 minute timeframe. Data provided by Poloniex and charted in TradingView.
Previous Analysis and Reflection
In my previous analysis I mentioned I was looking for price to fall into the Fibonacci Support Cluster 3, and then I would be looking for a reaction to the upside. Well, price did fall to that level, and we saw a beautiful reaction to the upside. A whopping 41% at the time of this writing.
Steem price even found its way back into the descending channel and reached the top trendline of the descending channel. Upon reaching this level we found some trendline resistance and I am curious to see if price can breakout to the upside.
Case for the Bulls
Higher Highs
After a week of lower lows we finally have "higher highs". This is a much needed sign for the bulls.
The Descending Channel
The price of steem has found its way back into the descending channel and even broke out momentarily.
RSI
On the daily RSI is still oversold and has plenty of room to move up.
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Bullish Engulfing
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Case for the Bears
The Trend
The trend has been down for quite some time. The bulls need to break out to the upside of the descending channel for a clear trend reversal. Until that happens the bears appear to be still in control.
Trendline resistance
As the bulls pushed price up, steem found some resistance at the upper trendline of the descending channel.
RSI
RSI on the 240 minute timeframe is approaching overbought territory. The bulls could be running out of steem here but we still haven't reached overbought territory so this remains unclear. This is just something that I am noting.
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Conclusion
All in all, it looks like today was a nice day for the bulls and they might finally win a daily candle. The price of Steem rose significantly only to be shut down by the upper trendline resistance of the descending channel.
Lets see if the bulls can push price out of the channel and finally breakout or if there is profit taking here and the bears push price lower in the channel.
