Did @edicted Call The Bottom For STEEM?
Where is the bottom?
This is a question that everyone in any financial market wants to know. Being able to time the bottom can make one very wealthy. Of course, that is a near impossible task. Markets rise and fall, often, without reason. They also tend to overshoot on both the top and the bottom.
At best this is an art as opposed to a science.
Nevertheless, that does not stop people from giving their best shot. We know that any asset class, unless it is going to zero, has a bottom. It is just a matter of finding it.
@edicted put out a post 4 days ago calling the potential bottom. There was a price target provided which, so far, looks to be spot on.
Here is what was written in the article.
Nope. Not really at all. My theory about Bitcoin is that it's 'secretly' doubling in value in a quite predictable manner. If we were to apply the same concept to Steem we should have fully expected to see a low essentially double the last one. We saw an all time low of 8 cents, perhaps we should have expected the next low to be 16 cents all along; everything going precisely to plan.
What a call. The posted expectation of a bottom should be 16 cents. I believe we dropped slightly below that before turning around.
So what is this all based upon?
It is the idea of higher lows. In the world of cryptocurrency, platforms tend to advance over time. Markets will operate on a whimsical basis but development is fairly consistent. Over time, a blockchain, if there is development, will get more valuable.
Contained in each ecosystem is a core group of people who dedicated to the project. Thus, they provide a built-in floor for the pricing action. There comes a point where those people simply cannot resist the pricing. They understand that a sale is taking place and take advantage of it.
If memory serves me, the 7-8 cent level was hit in March of 2017. Since that time, Steem has grown considerably. In terms of development, Steem is light years ahead of where it was at that time. The dedicated ones who are consistently using (or watching) Steem understand this.
Hence, we might have seen the point where they start to open up the buying window.
As stated, this is a theory that many apply to Bitcoin. Over the last decade, it is easy to see on a chart how Bitcoin keeps putting in higher lows. Each pullback is higher than the last one (keep in mind these are major pullbacks, have to look over a period of years).
Edicted applied the same mindset to STEEM. The view is that a doubling from the last time, since Steem is much more advanced, is the bottom from where the price dropped 30 months ago.
Obviously, a lot more is required to validate this call. It is possible that STEEM drops again and the bottom is not in. However, if you buy this theory, we could see a move upwards from here. Also, according to the second part of this, we should not see these levels (or the 20s) again after the bull takes off.
Markets are always fun. Perhaps Edicted is the one with the Midas Touch on this call.
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