Wednesday July 20, 2016 6:00 AM
It’s a set up I’ve seen over and over.
Long-term bullish traders waiting to get in on the next pullback. And the pullback never comes….
Why is STEEM seeing such a meteoric rise? As I tweeted yesterday:
But, so far, my cautious approach to STEEM has only left me waving from the curb while while the STEEM to $1000 tour bus pulls away.
Congrats to those making big money on STEEM, but be careful. I think there’s a good chance STEEMS straigh up chart is largely due to traders who are waiting for an ETH pullback to buy back into ETH and are hedging their bets by moving their money to STEEM right now.
I’ve even read comments like “I’ll make some money in STEEM until ETH spikes down after the hard fork”.
To me it explains why STEEM seems to go up no matter what the news is. Hacking? No big deal. Glitches? I’m sure it’s no problem.
Maybe STEEM is just a great story and deserves to be skyrocketing while ETH and BTC struggle, but ETH’s price pattern is looking increasingly bullish for the move to $15+ I called weeks ago. The only thing missing now is volume and it makes sense to me that the volume necessary to confirm this upmove will come from
STEEM holders who jump from the STEEM bus back to ETH.
Won’t take long to find out either. If this set up happens as I’ve seen in the past, ETH is heading straight for $15+ and STEEM should be due for a correction. Both ETH and STEEM should show huge volume compared to recently as well.
How sure am I about all this speculation? My current positions are:
35% long ETH
In the end I’m still a pattern trader and I want my volume confirmation!
I’ll cover more on STEEM soon as I like the story and plan to trade it.
NOTE: NOTHING IN MY POSTS IS INTENDED TO BE TRADING ADVICE. Please do not base your trades on any information presented in the materials on this blog as it is for information and entertainment purposes only. You are 100% responsible for your own trading decisions.