Is there any incoming breakout on STEEM?
Updated
I have been observing SSTEEM/BTC for a few days, the candles shows interesting findings. First of all, sorry for the messy chart. Horizontal cyan lines are actually support/resistance levels which I draw one by one in 1hr and 4hr timeframe. I find it comfortable to know where the candles might halt or retrace in the future down to whichever price levels I must anticipate, whether it is minor or major support/resistance line. Drawing resistance/support lines also make me avoid overfitting the data and may lead to misleading projection.
After reversing its trend to bull rally in early April, STEEM continues making its price spike several times due to of course speculative actions. Bullish rally can be identified by yellow diagonal lines spanning from lower left to upper right. Line A shows the lower low trend and line B shows upper low trend. Distance between A and B means some kind of safe zone where candles that retrace into it are considered still on the trend, but if it breaks beyond line A, then I will start to worry if bull run is over.
Another line which I draw is line C, D and E which are alternating diagonal lines to show the flag pattern. Right after the flag pattern ends, candles were breaking upwards just besides line C and D. Now, the interesting part is that if you notice the price of Spike 1, 2 and 3, there is a distance between them that upholds almost equally in both between spike 1 and 2 and between spike 2 and 3. By seeing multiple breakouts in multiple coins in April, I dont know if there will be another breakout in the future for STEEM, but I would say if there is one, the spike will hit resistance level at around 4330-5950 satoshi.
Another thing to consider is that since I use short timeframe for this analysis (4hr), it is worth to mention about short term retractement signal which may have been found, which is the pendants as shown in green triangles. Pendants indicating approaching breakouts tend to show volume increases in the beginning and gradually decays until the tip. If you see the MFI, I am afraid that the volume is really cooling down right now as the books explained. I am no foreseer, but I would say there might be a breakout after the pendant ends.
Conditions of the most recent candle (4hr timeframe):
1) Touching the support level (cyan horizontal line), well...one of them
2) Is around the base of the pendant (I would expect to retract upward at any moment)
3) Approaching the tip of the pendant
4) MFI is low (low volume)
5) RSX (RSI modified by Lazybear) shows buy signal
6) Slow EMA is about to cross faster EMA (shown below). If all slow EMA has crossed faster EMA, this would normally mean a death cross, but similar crossing action is seen just right before the breakout, so..who knows?
Hope for the best!
After reversing its trend to bull rally in early April, STEEM continues making its price spike several times due to of course speculative actions. Bullish rally can be identified by yellow diagonal lines spanning from lower left to upper right. Line A shows the lower low trend and line B shows upper low trend. Distance between A and B means some kind of safe zone where candles that retrace into it are considered still on the trend, but if it breaks beyond line A, then I will start to worry if bull run is over.
Another line which I draw is line C, D and E which are alternating diagonal lines to show the flag pattern. Right after the flag pattern ends, candles were breaking upwards just besides line C and D. Now, the interesting part is that if you notice the price of Spike 1, 2 and 3, there is a distance between them that upholds almost equally in both between spike 1 and 2 and between spike 2 and 3. By seeing multiple breakouts in multiple coins in April, I dont know if there will be another breakout in the future for STEEM, but I would say if there is one, the spike will hit resistance level at around 4330-5950 satoshi.
Another thing to consider is that since I use short timeframe for this analysis (4hr), it is worth to mention about short term retractement signal which may have been found, which is the pendants as shown in green triangles. Pendants indicating approaching breakouts tend to show volume increases in the beginning and gradually decays until the tip. If you see the MFI, I am afraid that the volume is really cooling down right now as the books explained. I am no foreseer, but I would say there might be a breakout after the pendant ends.
Conditions of the most recent candle (4hr timeframe):
1) Touching the support level (cyan horizontal line), well...one of them
2) Is around the base of the pendant (I would expect to retract upward at any moment)
3) Approaching the tip of the pendant
4) MFI is low (low volume)
5) RSX (RSI modified by Lazybear) shows buy signal
6) Slow EMA is about to cross faster EMA (shown below). If all slow EMA has crossed faster EMA, this would normally mean a death cross, but similar crossing action is seen just right before the breakout, so..who knows?
Hope for the best!
Note
Bigger pic
Note
Notice the MACD...
Fast MA is getting very close with slow MA. Two scenarios might occur within next candles:
1) Fast MA will not cross slow MA, just like what happened between March 12-19th.
2) Fast MA will cross slow MA
Due to ongoing bullish rally from early April, I will take my bet on the second one.
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