STEEM Dropped Hard With Crypto Market Then the $2.60 Support Level Kicked In

There is a reason I use basic support and resistance levels when investing in crypto currencies.

That reason is simple:

• I can use them for price points to make decisions

Let's take a look at the price of steem and see this in play...

The last time I posted an analysis of steem's USD price I talked about how it was hitting its head on the $4.50 resistance area and that $3.25 was the next down side target followed by the larger support of $2.60.

Market Breakdown

With the crypto market getting a hard sell off steem pushed right through the $3.25 level and reached - yep, you guessed it - the $2.60 area, before giving a small bounce to maintain above that level.

You can see all of this on the daily chart below:

To zoom in a bit and show the support level come into play, let's take a look at this chart below.

It is the hourly view and though we are not seeing a strong bounce at the moment - the point is it got a a prior price level we could expect that allows us to evaluate and decide what we want to do.

What exactly that action is differs for everyone as, for example one could decide to buy here and use the support level as their stop loss exit.

Or maybe instead when price broke $3.25 some one decided to sell with a target to buy back at $2.60 and save the difference.

The point is - there are many different actions that can be taken. But in order to do that you need clear price points to reference.

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Best Regards,

Disclaimer: All info in this post is my opinion and for educational use.