BTC is showing lots of weakness these days. There are lots of theories out there. The most popular one is dumping by the scammy PlusToken operators. The other theory is that hacked coins from Upbit and VeChain foundation are dumped. Another obscure theory is that dumping by whales to trigger stop loss selling since there was record number of long positions in a big exchange.
Whatever the reason behind the BTC's weakness is, BTC is short bear run after it hit $13K from its recovery from $3150. It overshoot in its recovery and gaped up too high (from $3.15K to $13.2K). Only spike in between was due to the Chinese President's positive remark on Blockchain when BTC recovered from $7K to $9K. Other than that BTC was in downward spiral from $13K with few recoveries in between.
Now question is that since psychological support at $7K and $6.5K has broken, next in the line is $6K and $5.5K. If these support breaks in coming days then BTC may flirt with $5K which is a big, big psychological support and will not probably break since big event such as BTC halving is ahead.
Moreover, market makers may need BTC cheaper (e.g. $5K) to take bigger positions. Therefore, they may manipulate market with big sells to trigger spiral stop-loss margin calls so that they can buy BTC cheaper.
Now the question is that if BTC breaks to $5K, then will Steem come back to its all time low. At current ratio (0.0000178 BTC), Steem will be 8.9 cents when BTC reaches $5K. Therefore, Steem also has to fall further against BTC to 0.000014. When BTC crashes quickly, Steem also crashes further against BTC. Therefore, it is not far fetched that when BTC hits to $5K, then Steem could reach 7 cents too.
However, recently Steem is showing strength against BTC either due to some rumors or speculation on upcoming SMT release. But if BTC breaks down quickly to $5K, this strength can reverses quickly. Therefore, I would say, there is a strong chance that both BTC can reach $5K and in that case, Steem can also reach 7 cents.
Interestingly, when Steem reached all time low of 7 cents in March 11, 2017, BTC was $1200. It is shame Steem's significant drop against BTC has made it possible that at BTC $5K, Steem's ATL is possible.
In this dark possibility, Steem has almost caught it elder bother BitShares in the CMC ranking. It looks like both brothers will sink and float together with its fight against BTC maximalists.
Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions. This opinion is only for educational purpose.
Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.
Thanks for reading.
Cryptominer , occasional trader and tech blogger since 2013
