Fear Of Missing Out has officially kicked in and there is no telling when it will stop.

Is this a blow off top or the middle of a massive bull run?

As I type this, Steem is trading around the $.42 mark. It just touched $.43 a couple minutes ago. 

Here is a chart of Steem in BTC:

This is a 2 HR chart showing a 1 month time frame.

Take a look at the volume in those most recent 2 hour candles. Some of the biggest volume we have seen in the last month and it is taking place at higher prices. Lots of money is flowing into the space...

The second chart is a 4 HR chart showing a 1 month time frame:

As you can see, Steem is breaking the previous monthly highs and is in full blown FOMO mode. Buyers are eagerly eating up any sell orders that pop up. We have currently just passed the $3 million dollar volume traded in the last 24 hours, which is one of the bigger amounts in a single day.

My Thoughts:

Normally, when I see trading activity like this, my first inclination is to sell. I think to myself this is extreme bullish behavior and it can't last forever, the best move is to take profits. 

However, this isn't JUST going on with Steem. Altcoins everywhere are flying up as well. We have seen a massive amount of money enter the entire space over the last 2 weeks and it really hasn't shown any signs of slowing. 

A lot of that new money appears to be coming from Japan as mentioned here:

https://steemit.com/bitcoin/@jrcornel/the-next-tulip-mania-or-the-beginnings-of-something-more

So, yes this is extreme bullish behavior but since we have some rule changes taking place in different countries (consumption tax going away in Japan on virtual currencies) around the world, and since these coins are being introduced to new places for the first time, we might continue to see a lot more money flow into this space for some time to come. 

What do we do now?

That is the $64 thousand dollar question!

As mentioned above, my first inclination is to sell this kind of trading activity, but that probably depends on your investing time frame. Yes, we might see a pullback fairly soon here, but with the amount of new money coming into the space we might see a continuation of this bullish trend for some time yet. 

So, if you are a trader and looking to capture every peak and buy back on every dip it might be a good time to lock in some gains. However, if you are more of a longer term investor we might see much higher prices yet to come. 

Times like these are always tough to know which action to take and when that happens sometimes the best action is no action at all. 

If I sell here I may be happy that I locked in a nice 30% gain, but I could be kicking myself when the price is 2X higher a week or two from now, so again it all depends on your trading/investing time frame and ultimately your personal goals.

Good luck everyone and stay safe out there. Remember to stick to your trading/investing plans and don't let emotions dictate your decisions. 

*Remember to do your own DD before making any Buy or Sell decisions

Follow me: @jrcornel