When we look at Steem trading at $4.40 today, $50 may seem like a pipe dream for any long term hodlers on Steemit. However, we will find that Steem, like Bitcoin, is in the 2nd wave of a long term Elliott Wave cycle and $50 by the end of the year is entirely possible.
Before we get into the charts, let me state what my main point of optimism is for such a price target. We are only this year entering the early adopters phase for digital assets. That means that currently 1-3% of the population is invested, and another 10-12% is looking to come on board this year.
If you’re like me, you are not looking to sell your assets anytime soon. That lack of selling is only going to put more buying pressure on a market that is adding hundreds of thousands of new customers each day.
Now, let’s look at some charts and talk abut the price correction bitcoin is undergoing right now.
I am using dots on our charts to symbolize the ABC correction points.
You can see that bitcoin has a point A that bottomed at $12,000, from which it corrected to point B at $18,000, and is currently sitting at point C around $10,000.
We may see bitcoin sneak under $10,000 for a bit, but I believe we are about done with the 2nd wave correction and our ABC pattern.
Steem has seen a similar correction from 52,000 satoshis down to 35,000 for point A. Point B touches around 41,000 satoshis, and point C hovered around 33,000.
There are a couple items I wish to point out in Steem’s chart, and those items are the volume candles that I have arrows on.
Whenever I see volume candles that big, it is impossible for me to ignore. What that tells me is that somebody is accumulating A LOT of Steem before the price moves. As you can see in the chart, the price doubled right around the time of the large volume candles.
Coupled with that large volume is the relatively quick recovery that Steem has had.
While bitcoin is still finishing its ABC correction, Steem is already moving up from its own correction. This is very bullish to me, and shows that a healthy wave 3 move to the $15-$25 range is in order here in the spring.
While we will likely have a pullback in the summer to early fall for the 4th wave correction. Our last wave ought to carry us to $50 as Steemit continues to grow and the SMT tokens begin to gain traction through the year. It is going to be an exciting year!