Watch out! The Price of Steem is going to break out! What is the poloniex effect?

Currently, the price of Steem has weaken 10% from $2.15 to arounf $1.99 ... there is a reason is that currently the biggest exchange for Steem is Poloniex, is currently not able to process any inward or outward transfer of Steem for the time being.

So why will there is a breakout? Well, there is currently a freeze on transfer out, so many people who needs to transfer funds out from Steem is doing it by selling it and trading it for BTC or ETH, this has caused a downward pressure on Steem.

(image via @chaska4)

Whenever there is a technical issue like this price tends to overshoot ... in this case it has overshoot downwards. There is uncertainty as to when the transfer will resume so people who were originally keen are now sitting on the sidelines. They will be ready to pounce once this is removed. This happened recently to Eth when there were technical issues on Poloniex which result in a flash crash of Eth. It is always Poloniex!!!!

So dont worry, the price of Steem will breakout once this issue is resolved. HF19 has resulted in a lot of pent up demand and this will cause Steem to breakout into new price record soon.