EOS Has Broken Bearish? Now What?

2 בדצמ׳ 2018

Since my first EOSBTC chart, we have broken down below the uptrend line and the accumulation zone that had been established. As I mentioned in that analysis, it seemed like it was priming for a push up (which happened briefly), but I also said it was a low risk trade because the stop loss area was so close to the buy in point. Selling on the breakdown of 8000 would have been a good idea.

Now, EOSBTC is lying in a horizontal support zone. We can go up from here, but I have a feeling it's more likely that we test the 5000-5400 strong support area first. EOS still remains one of the stronger looking coins long term, but unfortunately it has failed to hold recent support, unlike some other big cap coins like XRP, XLM, and even TRX. This may show some further signs of weakness. If it decides to break below this current support at 6800, 5400 is the next zone I'd be looking at.

On the bullish side, perhaps EOS can get back above its previous support, just like TRX. This would invalidate my new bearish bias towards this coin. We'd have to break back above 7600 for starters, and then have a higher push towards 9000.

This chart is mostly for fun, since I don't hold a position in EOS. If it gets really low, I might consider buying some though.

Support:
6800
7000
5400
5000

Resistance:
7600
8000
8300
8800

This is not financial advice or a recommendation to buy or sell. I'm not a professional financial advisor. This is just for fun, and for others to enjoy.

Previous EOSBTC analysis:

-Victor Cobra

3 בדצמ׳ 2018

הערה

Broke below 6800 as expected. The next support to break would be 6500 (the one tested today). Maybe we can get a push up back to 6800/7000 if the market decides to bounce soon, but it looks more like we're forming a bear flag on the 15 minute chart.

3 בדצמ׳ 2018

הערה

Looks like we're trying to retest the broken support. EOS is certainly not going down without a fight!

4 בדצמ׳ 2018

הערה

The bear flag broke, giving us another 10% decline. Getting closer to my first target at 5400, but buyers often step in before obvious supports, in order to incite FOMO and take more supply from the market. We've bounced at 6000, which is a psychologically important number. It's possible that the low has been set, so if I were short, I would have closed a good chunk of my position around there. Pretty great profits if you shorted from 8000.

4 בדצמ׳ 2018

הערה

This could be the beginning of a larger bounce, so a small long may not be a bad idea, with stops right below 6000 and targets up at 6800 and 7600.

4 בדצמ׳ 2018

הערה

For this to happen though, Bitcoin needs to follow through with this little short squeeze.

4 בדצמ׳ 2018

הערה

Looks like Bitcoin has failed to sustain back above 4K for now, so EOS has also failed to sustain its bounce. In order to confirm a long signal, this bounce really should head higher past 6500 and 6600. It's getting much riskier to trade this, as the setup is less obvious. If you were short from 8000, now is a good time to close a chunk of your position. However, if we break below 6000, it would open up another potential short target in the 5000-5500 area. Stops should be above 6500 for the short, and below 6000 for a long. Seems to be trying to be completing a bear flag OR a double bottom. The market looks super weak though.

4 בדצמ׳ 2018

הערה

Dropping back towards 6000. Supports below there are:
5600
5400
5000
4000
2200

4 בדצמ׳ 2018

הערה

Bounced back up again a bit. As I said, risky to trade here. Going out to enjoy my day. Good luck!

5 בדצמ׳ 2018

הערה

Since the market is still looking weak and Bitcoin has failed to bounce, we've slid below 6000. My mid-term bearish targets are 5400 and 5000 as stated above, but watch for any bounce action. Shorting below 6000 is way riskier than shorting on the breakdown of 7000-8000, which was the original idea of this chart. Anyway, I hope you've enjoyed my updates! Let's see where the market wants us to go.

5 בדצמ׳ 2018

הערה

Cool bounce! Nice bullish rejection wick forming.

5 בדצמ׳ 2018

הערה

This is exactly why I said shorting below 6000 was risky.

5 בדצמ׳ 2018

הערה

Might also just be a stop hunt. Definitely "margin traders getting rekt" territory.

6 בדצמ׳ 2018

הערה

We've gotten down to the 5600 area, which is pretty close to my original 5400 target. If you're still short from 7000, 7600, or 8000, now would be a good time to close another portion, as the market has a decent chance for a bounce now.

7 בדצמ׳ 2018

הערה

We've officially reached my low target of 5000. Now is a good time to look for price action to dictate where we go next. On a breakdown with volume from here, 4000 is the next bearish target. On the other hand, I'd be watching for a bounce. We're very close to some of my DCA targets for some coins, including $77-80 for ETH and $4-5 for NEO. This is a great technical place (in my opinion) to begin adding to long term positions, assuming the market turns around at some point. Obviously we could head down to the 2K and 1K areas for Bitcoin, but this is a good time to begin accumulating, if you believe in the space and you have the spare cash.

17 בדצמ׳ 2018

הערה

Small update: Going long from 5000 would have been a good idea, with a stop below 4700. Might be too late to enter a safe trade at this point, as the r/r isn't quite there. We seem to be heading up towards the 6800-7000 prior support to test it as resistance. If it fails, we'll likely be headed back down. If it breaks up though, we can look for another long signal to take us back to 8000.

17 בדצמ׳ 2018

הערה

Made it up to 6800-7000 faster than expected. We may have a pullback here, so if you're long from 5000, I'd probably close a portion of my position. Already some great profits. However, if we blast through this zone, we'll probably make it up to 7600 at least. This is a fun one to watch, anyway.