Some Correction In Crypto

Hello Steemians! Over the weekend, BTC couldn't clear 10K, and now correcting a little bit. Let's have a look:

First of all, apologies for having too many lines on the chart. I don't like it, but it means something. It basically means the chart looks ugly without any clear trend. I must say, that's the case. So clearing the 9800 resistance earlier didn't help the rally at all. Basically from my point of view it is now a resistance at 10K. Whole numbers matters, and they are easy to say and write. I will say the uptrend is still intact as long as we are above 50 EMA, which is near 8800 (I didn't plot it, too many lines). If we go below that, we probably go toward 7800, but if we bounce now we will have to deal with 10K.

Steem:

Alright, this is the primary reason, I don't like to trade pattern, as they often fail and therefore make predictive directional trade fairly useless. On the steem daily we had a nice flag/pennant heading into the weekend. TA suggest, as we are on an uptrend, we should have broken to the upside. But fact is, that we didn't. In reality Flag/Pennant has about 60% success rate; that means about 40% of the times the pattern fails! I don't know about you, that is a very high failure rate for me for a directional trade.

Anyways, Steem broke the pennant to the downside, broke the short-term trendline shown in green, and broke 10 EMA. However 50 EMA is still intact, so uptrend is still intact. So if we break to the downside, we have those mid-March highs in the 2.0-2.3 area for support, dashed green horizontal line. By that time stochastic will likely be oversold again.

Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.

Charts are created in Tradingview.com, which is a free service