I know many were hoping EOS would break away from it's tie to bitcoin after the ICO ended. Unfortunately, that's not the case...at least not yet. It just broke through critical support on the daily RSI. This marks a major win for the bears.
Looking at the 4 hour RSI, we can see it's approaching a very strong support. If the bulls can't defend this, EOS may be on it's way down to at least $8.50.
There are a few ways to count price movement over the last month. I believe the one that makes the most sense has EOS in a WXY pattern. We're seeing many WXY patterns (wave failures), across multiple altcoins due to their tie to bitcoin. I believe EOS is no different. If accurate, it's currently in wave A of an ABC correction. The next major support area begins at $8.70. If it bounces prior to $8.70, it'd be a good sign the bulls still have some fight left in them. If not, I'd look for a strong bounce between $8.70 and $8.50. Here's how it may play out.
Looking at the 4 hour RSI and MACD, we find bullish divergence. This suggests a descent bounce is coming.
The 1 day chart shows EOS is trading just under the lower bollinger band. This also suggests a bounce is coming.
From a traders perspective, I won't be interested in buying until it reaches that first support zone. I'll start to latter in buys between $8.50 and $7.90 (Buy zone 1), with a tight stop-loss at $7.65. If that fails, I'll most likely start to latter in again between $6.50 and $5.50 (Buy zone 2).
Remember, this is a very risky market. Never trade with more than you can afford to loose. If you do decide to enter a trade, make sure it's based on sound logic. In other words...do your homework, only enter trades with a good risk to reward ratio, and possibly most important, have a clear exit strategy that's completely devoid of emotion.
Let's see how the next 48 hours play out.
BIAS:
Short Term: Bearish
Longterm: Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.
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by Workin2005
Nice analysis.
Thanks @rollandthomas
Its Hard time to crypto market lets see when market take
U turn and we enjoy the profit
Thanks for the info shared here
@maujmasti
Thanks
Yeah, keep am coming!
Will do!
I had missed this, thank you. I noticed the bullish divergence on the 4-hour as well. I never thought we'd see these levels again, but here we are coutesy of bitcoin. Not using stops on this one, hodling through and looking out 4-24 months.
Nothing wrong with that....if you can afford to wait it out, it certainly is less stressful than trying to time it perfectly.