Yesterday we saw some price action on STEEM.
STEEM went up in sats to 2200 and in USD to $0,17 before being slammed down again.
Old me, back in the day, would have been excited beyond belief in the pump moment.
THIS IS IT! WE ARE GOING UP.
I have become way more grounded and what helps me a lot is TA (Technical Analysis).
I have my friend @ezzy to thank for that.
I don't use TA much to trade (I don't (day) trade a lot anymore, most of my investments are long-term) but it helps me explain why price behaves the way it behaves when all the fundamentals look so bright.
I have become a big fan of the moving average. It's a line that shows price trends over a certain period of time on charts.
Here we have the daily chart for STEEM and an arrow pointing to what happened yesterday.
STEEM price temporary broke through 4 moving averages but it closed the day below all of them.
The moving averages act like resistance or support on price.
(This was the part I always had trouble believing, but I have seen it in action to many times now that I no longer can say it's not true.)
The problem with STEEM's moving averages at the moment is that they are all pointing down.
Indicating a bearish trend in price.
And until they start to turn and point up, I just assume there is more down to come. It helps to keep me grounded.
Now I have been buying STEEM gradually in the downtrend in 2019 and you might wonder why the hell I didn't wait for the indicators to turn before buying.
I guess that has to do with my memory of what STEEM can do once it wants to get going.
Here's what happened in March 2017 when STEEM was near death ($0,07).
Within a week STEEM broke all the moving averages and went from $0,07 to $0,37 and then traded steady around $0,16 above most of the averages before trading much much more higher in the year.
I felt like I didn't want to miss such a moment and I always been ultra Bullish on STEEM.
I started buying from $0,40 gradually till about $0,15.
I think I'm averaging about $0,25 STEEM price.
I now feel like I have enough STEEM that when a moment like 2017 would occur I would perfectly fine with what I have acquired.
And if the downtrend lasts a little longer then I'm looking to buy more below the 7 cents level.
I'm here for the long term anyway (3,5 years and still going strong).
The fundamentals for STEEM look good.
I would say much better then they did at the beginning of the year.
It wasn't an easy year for STEEM though, especially price-wise but a lot of good things have been implemented under the hood like MIRA and RocksDB, ensuring Steem is much cheaper to run.
I like the WORKING applications build on STEEM today and the constant search for revenue outside the reward pool.
I like the upcoming community feature for Steemit.com and SMT's with RC pools.
And I like how there is still a diehard community here willing to put in the work every single day whether it's through a post, an upvote or developing a project. They keep the blockchain alive.
I have no idea what the price will do from here and how much longer the downtrend will last but I'm happy I'm properly onboard today because things can turn around fast if they want.
Please consider us for your witness vote if you think we deserve it here:
Get it Here:
Ha, ha, ha. I thought you'd gone all Zen there for a moment. When I read "grounded" and "TA" in the same sentence I thought you'd started meditating! 😂
Still going strong today. The volume is very low though. How did all the sell pressure suddenly disappear?
Either there is a bunch of whales who finished powering down/selling liquid steem or Steemit, Inc has stopped selling.
Which site do you use for charts?