Steem at 9 cents?! Why it's not time to panic!

So if you are at all interested in Steem's price you probably noticed that the price paired to USD has fallen below the 10 cents mark

This has absolutely nothing to do about Steem's performance. I always see a lot of people saying that steem's loss of value (paired to USD) has something to do with Steem in general. While I do not want to sweep Steem's problems under the carpet, the loss of value has little to do with this. The main factor has always been bitcoin's performance: If bitcoin is doing well, so is Steem; and if it is not doing well Steem's price will also be weak...

Contrary to bitcoin, steem is still in a bear market, meaning that prices are reaching ever lower areas. But there is reason to believe that this bear market is coming to an end. You can see that in spring of 2017 we had even lower prices going into the 4 cent area. Above that, there is a lot of support and as I have often said I think the price will bottom out between 8-11 cents (which it seems like now it will be the lower end of things).

Taking a look at bitcoin the chart looks quite different, yet nevertheless there are similarities. One big difference is that the price since the end of the bear market in late 2018 has increased by about 120%. Bitcoin is not making losses in the long term! The difference to this is that steem has been in a continual decline. Point A (in steem's chart) "should" have been the end of the bear market, but it was not, meaning that the price could still slide down.

However, as bitcoin is not in a bear market anymore, the price will recover in the next months with possible lows of 5000-6000$. Alternately, the price will stabilize at around 6.500$ and move up again. This price change will be reflected in steem/USD. So, be prepared for more price drops. The long term perspective, however, is clear: Prices will bottom out eventually, so if you are thinking about buying coins, now is actually not a bad time...