Trade Recommendation: Steem
Our February 25, 2019 trade recommendation for Steem (STEEM/BTC) reached both targets. The first target was achieved on February 28 when the market rallied to as high as 0.0001088. The second target was hit on March 7 when this coin tapped resistance of 0.0001247. Those who followed the trade recommendation grew their investments by over 55% in two weeks.
We expected the price to significantly pull back after hitting our targets. Unfortunately, we’re not getting that chance because bulls are front running each other. Consequently, the market resumed its ascent. Bulls may be looking strong but they can’t keep this up for long.
Technical analysis shows that STEEM/BTC has taken out resistance of 0.00012. This triggered the breakout from a double bottom pattern on the daily chart. The breakout looks valid as seen by the tremendous volume. A quick look at the daily chart shows that today’s volume is the highest in this altcoin’s history on Binance.
Nevertheless, Steem is in extreme overbought territory. The market is overheated, which is why a correction is in order. The market needs some time to cool off to keep the uptrend sustainable.
The strategy is to buy the pullback as close to 0.00012 support as possible. If STEEM/BTC successfully flips this resistance to support, bulls will likely generate the momentum to climb to our target of 0.0002.
The process may take a month.
Daily Chart of Steem/Bitcoin on Binance
As of this writing, the Steem/Bitcoin pair is trading at 0.0001302 on Binance.
Summary of Strategy
Buy: As close to 0.00012 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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