STEEM Price Analysis – December 22, 2016

The STEEM price is in a downtrend once again as volume increases.

In yesterday’s post, I pointed out STEEM’s break through a few critical metrics: the month-long uptrend line, mid/long-term support levels, and the lowest Fibonacci retracement level of 23.6%. All of these occurred in almost the exact same place on the STEEM/BTC charts. In the last 24 hours of trading, the price has moved lower and is testing some light support at ~$0.13.

To the charts...

First, we have the downtrend line from the last local peak on December 6th. If we disregard the “blow-off” top – the final spike during that peak – we can draw our line and see the price firmly trapped below it over the past two weeks.

---

---

On the 4-day chart, we can see where the critical lines of support were and where the price has moved since falling through that support. The red line represents the ~$0.16 STEEM price and the 23.6% Fibonacci retracement. The ~$0.16 price range is now the upside resistance that we’ll need to watch if/when the STEEM price turns around.

---

---

On the 2-week chart, we see the downtrend once again (red line), the new resistance line (blue), and the increasing volume. The increasing volume is something that I have been paying attention to during the fluctuations of the STEEM price. As stated many times before, higher volume has been mostly bad for the STEEM price. As it has increased over the last couple of days, the price has again fallen.

---

---

Buy orders are quickly stacking up on the Poloniex exchange, but whether they’ll be enough to prevent a further move downward is the question. Currently, there is a fairly large wall right around $0.13, with buy orders totaling 32 BTC or ~$27,000. Behind that is another wall around $0.10, with orders totaling 79.5 BTC or ~$67,000.

---

---

Consistently falling prices on increasing volume is not a good sign for STEEM and we need to be aware of this when making short and mid-term buying decisions. Until that trend changes, I would be extremely cautious about buying during these price movements – unless, of course, you’re buying for the long-term and expect to see prices rise over the course of several months or years.

We also need to keep in mind that the BTC price is on the rise, so this can skew interest, buying power, and prices in favor of BTC traders. There are a lot of dynamics at play right now – including a major holiday week, so anything can happen in the markets. Couple that with powering down schedules and things can appear to be getting downright bloody. Times like this are not good for making any meaningful predictions, so I’ll refrain from that, other than to say that I still think we could expect to see $0.10 STEEM again before we see $0.20 or higher.

I’ll leave you on a bit of a positive note today: the weekly power down statistics from Steemdb. There’s a full week of green ahead!

---

---

Thanks for reading – and feedback is always welcomed and appreciated.

---

Disclaimer: I am not a professional advisor and this info should not be used for trading. I would be flattered that you think so highly of my fairly basic analysis, but it would not be prudent to use this for transacting with real money.

*Charts are from Coinmarketcap.com and Poloniex. Analysis is current as of approximately 1:15am EST, December 22nd, 2016.

Follow me: @ats-david