RE: STEEM: Fractal Analysis & Pattern Say Serious Breakout Potential is at Hand

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STEEM: Fractal Analysis & Pattern Say Serious Breakout Potential is at Hand

in steem •  7 years ago 

I'm not super adept at trading or technical analysis. But one thing I have been able to pick up from studying and watching lots of videos is that it is more stable to look at a usd pair when viewing a crypto. I watch the crypto news stream on YouTube, and they were just talking about this earlier. When you analyze x/btw, you are looking at x AND btc, so you are tracking two things in relation with lots of volatility. A usd pair will have the volatility of x with the stability of the dollar. I think that makes technical analysis easier?

I honestly am not sure. Explaining it made the waters a tad more muddy and murky for me, so I hope I didn't do the same for you.

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Yep, that's right. There is definitely value in looking at the STEEM/BTC graph too. I think traders get it wrong if they completely disregard one or the other graph.

I agree completely. Much easier to set targets versus the $.

Sorry do disapoint you, but you got It backwards. All price that appears as steem/usd graphs are derivative of the BTC price, not steem.

All platforms that show the price in usd of coins that are not traded in usd (like steem) do this conversion to define the usd price:

COIN -> convert to BTC -> convert to usd

That way, If the price of steem/BTC stay stable, but the BTC/usd price goes up, then the price of steem/usd goes up only because the price of the BTC went up.

True but it's not ONLY because the price of BTC went up, it's also an indication that the value of STEEM is going up because people choose not to sell it even though it's USD value is going up. In other words, USD value goes up is two-fold - on the one hand it's because BTC is going up but on the other hand that has to mean that STEEM value is going up, because people are not selling to bring it back to the lower USD price.

What you Said Just make no Sense, because people dont trade steem for usd, only for BTC.

If people trade STEEM for BTC and they see BTC go up in value but decide not to sell STEEM, that is the equivalent of accepting that their STEEM has also increased in value. Example:

Say I use 5 USD to buy BTC to use to buy STEEM with, because I think 1 STEEM is worth 5 USD. Let's say I want to sell that 1 STEEM once it's USD equivalent value goes to 6 USD. That means that if BTC goes up 20%, I should now sell my STEEM for BTC and convert that to USD. IF I DON'T do that, then i must think that the value of 1 STEEM has now INCREASED to 6 USD. Hence if the value of BTC goes up in USD terms but the BTC equivalent of STEEM stays the same, one has to assume that the value of STEEM has also increased.

This is the reason why Tradeviewer converts alts into USD equivalents whenever possible.

What you are saying still make no Sense, and reality dont bend to fit what you want.

You are still buying steem with BTC. So the steem/usd still derive from BTC/usd pair.

You cant accurately evaluate the usd price of something If this something is not directly traded for usd.

Any price movements that happen on steem/usd is heavily affected by the price of BTC/usd.

The price increase because the BTC price increased. Check the graph below from Tradingview that show the % price change from these 3 pair:

https://steemit-production-imageproxy-thumbnail.s3.amazonaws.com/U5dtgHARsAjv83vFzsbMMrN1Jrqeciw_1680x8400

Since It started Trading on bittrex, steem Lost 64% of its price, while Bitcoin increased 2300% of the price.

Now Tell me, what made the steem/usd price rise? If you didnt Saw It yet i Will Tell you: BTC is what drive steem/usd price up.

All movements of steem/usd price ia a reflectir of BTC/usd graph.