Steem / USD Technical Analysis: Struggling Against The Pattern

Steem must rise to the challenge and overcome the strong bearish pattern.

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  • Steem is bullish in the short-term, although the MACD indicator is showing bearish divergence on the four-hour time frame
  • The medium-term outlook for the cryptocurrency remains bearish despite the recent rally
  • Bulls have much work to do to invalidate the bearish head and shoulders pattern on the daily time frame

Steem / USD Short-term price analysis

In the short-term, Steem is bullish after the recent rally in the cryptocurrency triggered a large inverted head and shoulders pattern on the four-hour time frame.

The MACD indicator on the four-hour time frame is showing bearish MACD divergence, which if corrected, would see the STEEM / USD pair falling back under its 200-period moving average on the mentioned time frame.

A downward correction may be nearing as technical indicators are starting to appear overstretched.

STEEM / USD H4 Chart                                                           (Source: TradingView)

Pattern Watch

A degree of caution is warranted as the bullish inverted head and shoulders pattern on the four-hour time frame has yet to reach its upside objective.

 

MACD Indicator

The MACD indicator is currently showing bearish MACD divergence on the four-hour time frame.

Momentum Indicator

The Momentum indicator is turning lower as the recent up move is starting to weaken.


Steem / USD Medium-term price analysis

Steem is bearish in the medium-term, with the recent up move failing to invalidate the large head and shoulders pattern across the daily time frame.

The cryptocurrency is trading well below its 200-day moving average; buyers will need to make significant gains to start to trade back above it. Technical indicators are also starting to approach overbought conditions on the daily time frame.

STEEM / USD Daily Chart                                                                         (Source: TradingView)

Pattern Watch

Traders should watch the head and shoulders pattern for the potential creation of a right-hand shoulder or eventual invalidation of the bearish pattern.

MACD Indicator

The Momentum indicator on the daily time is still rising with a bullish crossover underway.

RSI Indicator

The Relative Strength Indicator on the mentioned time frame is turning lower after reaching overbought trading conditions.


Conclusion

Steem is bullish in the short-term, although the four-hour time frame is signaling that the latest up move has created large amounts of bearish price divergence. STEEM / USD medium-term outlook is likely to remain bearish until we see the cryptocurrency breaking to fresh 2019 trading highs and invalidating the head and shoulders pattern on the daily time frame.


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