Crypto Coins News
GOOD AFTERNOON STEEMIT!
As traders, we know that the price of a market is just purely a reflection of human behaviour. What we also know as human beings is that we don't always act rationally but for the most part, we are predictable, pattern following Neanderthals.
Why do you think psychological levels like round numbers work so well as support/resistance levels in trading? Well, this is because as human beings, we value simplicity.
Ever noticed how stores will place prices around whole numbers. Your brain would rather pay for something that costs $20.00 than $22.32 and marketing departments price their products accordingly. (Unless you're in the US with their ridiculous taxes that isn't included in price... seriously guys, what the hell is with that??)
Well as markets are just a reflection of human behaviour, they work around whole numbers exactly the same way. Evident no better than in the current price action of STEEM.
Just take a look at the daily chart below:
STEEM/USD Daily
Just look at all those wicks spiking down to the $1.00 USD mark and then price bouncing off it. Heck, price has even managed to get that trend line support line to line up with the $1.00 level, adding confluence to the level.
Zoom into an intraday chart and you can see the type of bouncy price action that I'm referring to:
STEEM/USD Hourly
BOING!
Get around it cyrpto traders.
Peace.
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