Steem / Bitcoin Technical Analysis: Condensing
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- Steem has turned bearish against Bitcoin in the short-term, with price falling below its 200-period moving average on the four-hour time frame
- The STEEM / BTC pair is headed for a key test of its trend defining 200-day moving average
- Downside pressure is building on the daily time frame after a bearish breakout from a rising wedge pattern
Steem / Bitcoin Short-term price analysis
Steem has turned bearish against Bitcoin in the short-term, with price falling under the pair’s 200-period moving average on the four-hour time frame.
The four-hour time frame also shows that price has moved below the neckline of a bearish head and shoulders pattern with a sizeable downside projection.
Technical indicators on the mentioned time frame have turned heavily bearish and continue to signal further losses ahead.
STEEM / BTC H4 Chart (Source: TradingView)
Pattern Watch
Traders should note that if the bearish head and shoulders reaches its full downside projection, a much larger bearish head and shoulders pattern will take shape.
Relative Strength Index
The RSI indicator has also turned bearish on the four-hour time frame, although it has moved into oversold territory.
MACD Indicator
The MACD indicator has turned bearish on the four-hour time frame with both the MACD signal line and histogram signaling further losses.
Fundamental Analysis
In the short term, Steem was able to gain some traction following the overall positive uptrend of the market. However, if the company does not successfully reorganize itself and start delivering on its promises (like the release of SMT), it will most likely continue to slip down the charts.
Steem / Bitcoin Medium-term price analysis
Steem has a neutral medium-term trading bias against Bitcoin, with price now moving back towards the pair’s trend defining 200-day moving average.
The daily time frame clearly shows a bearish breakout from a rising wedge pattern is underway, which could signal further losses for the STEEM / BTC pair over the medium-term.
Technical indicators have also turned bearish on the daily time frame and continue to signal further downside.
STEEM / BTC Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that rising wedge patterns are more reliable in bearish markets. If the entire cryptocurrency market comes under pressure, the pattern may have a higher probability of reaching its full downside projection.
Relative Strength Index
The RSI Indicator on the daily time has turned bearish and is trading below neutral for the first time so far this month.
MACD Indicator
The MACD indicator on the daily time has turned bearish and has scope for further losses.
Fundamental Analysis
In the medium term, Steem will most likely continue its downtrend movement. The project has faced many issues since the start of the bear market. The company that supports Steem development had to lay off nearly 70% of its staff in Q4 2018. At the same time, its main blogging platform Steemit.com is losing its popularity, due to the fall in the price of STEEM, and overall flaws in the blockchain reward distribution mechanism.
Conclusion
Steem is starting to come under downside pressure against Bitcoin, with the four-hour and daily time frames both showing bearish patterns starting to play out.
If price starts to trade below the STEEM / BTC pair’s 200-day moving average, technical selling pressures are likely to accelerate.
Check out our introductory course on the Steem project here.
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