HomeBitcoin UpdateLatest bullish momentum again in bearish territory? EOS has fascinating indicators

Latest bullish momentum again in bearish territory? EOS has fascinating indicators

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The bullish case for EOS final week, when Bitcoin additionally had a doable transfer above $46,000, was for the worth to climb above the $3 mark. Up to now week, nevertheless, Bitcoin was rejected at $45,500 and EOS at $2.69, which bolstered the energy of the longer-term downtrend for EOS. The short-term rally appeared to have halted at $2.69- the place to subsequent for the worth?

EOS- 12H

Supply: EOS/USDT on TradingView

Highlighted on the chart, the market construction has been bearish since mid-November, when the worth broke down beneath the $4.15 help degree. The $3 space, highlighted as a purple field on the charts, was a confluence of a number of vital ranges. The $3 is psychologically vital, as a spherical quantity resistance. Furthermore, it was a long-term horizontal degree of significance.

A set of Fibonacci ranges (yellow) plotted for EOS transfer down from $6.42 to $1.99 confirmed that the 23.6% retracement degree was at $3.03, one other resistance. In early December the $3 space acted as demand, and the worth bounced from there, however in mid-January, this space was flipped to resistance.

Having established the $3 space as an space of significance in the long run, the rejection at $2.69 confirmed that the bulls weren’t even robust sufficient to drive costs to the $3. And, sellers made their energy felt a lot beneath the $3 degree.

Rationale

Eos Rejected At Resistance, Reinforcing The Downtrend It Has Been On Since November

Supply: EOS/USDT on TradingView

The Superior Oscillator was simply beneath the zero degree, though it did climb above it within the latest rally. Nevertheless, prior to now few months, the AO has been beneath the zero line for a majority of the time. The MACD additionally confirmed related evidence- the latest bullish momentum was as soon as extra again in bearish territory.

The OBV has been climbing upward (larger lows) prior to now month- the shopping for quantity confirmed the presence of demand regardless that the market construction was bearish.

Conclusion

Regardless that the OBV confirmed some demand prior to now month, this might simply be reversed within the days/weeks to come back. The momentum briefly confirmed bullishness, however the worth was rejected on the $2.69 degree. General, the worth motion informed a narrative of a powerful downtrend, and EOS may very well be pushed decrease towards $2 as soon as once more.

Disclaimer: The findings of this evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation.

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