EOS: weekly market analysis (from December 16th to December 22nd 2019 on BTC / EOS pair)

Even EOS, like almost all the currencies on the market, underwent a heavy retracement at the beginning of the week, which led the prices to score a lower minimum than that reached on 24 November; tendentially, therefore, this should be read as a bearish signal and in fact, as we are going to see in the next paragraph, at this moment there are no extremes to go long on EOS.

BTC / EOS bears control the market

Normally a skilled trader tends to look little at the order book, especially to avoid being influenced, however many small investors and novice traders base a lot of their operations on this; in any case, even the most experienced traders do not fail to take a look at the order book from time to time and we also in our analyzes understand that we refer to this aspect in particular. In the case of EOS if you look at the order book it becomes practically impossible to decide to open a position, with the very thin side of purchases (just a dozen bitcoins) and the sales side that looks like a mountain almost impossible to climb with orders placed for over 10 thousand bitcoins; although it is well known that precisely through the order book one of the most common forms of manipulation in the crypto market is practiced, and it is also the reason why I personally tend to consider it little or nothing, in the case of EOS the situation is quite terrifying. For the rest, observing the 30D graph, the very first impression that is drawn is that the price is returning from where it started in October 2017, so there is still a long way to go downwards; when EOS breaks the current support (which seems inevitable) the price will drop to 8150 satoshi and lose much of its current value. Looking at the weekly chart, however, we realize that before returning to the historical minimum there is another interesting support to observe in the 21648 satoshi area and this is the level that we must wait for to be reached before evaluating even remotely to open a position. on EOS. A quick look, to conclude, to the 1D chart does nothing but reconfirm all that has been said so far.

Weekly forecast

I don't think there is need to say explicitly that at the moment I am very bearish on EOS, it is clear from everything written in the previous paragraph; in reality this is a currency in which I have little confidence and this inevitably feeds my bearish interpretation of the charts. Trust is in fact a fundamental component of cryptocurrency trading and it is the only element that allows us to model a currency even when it is heavily at a loss; obviously not everyone thinks like me, a part of the community is very enthusiastic about this project, however it is a minority and this is also reflected in the prices. Compared to other projects, the hard core of those who blindly trust EOS is quite small, if we add to this a distribution of coins during the ICO phase, probably cured badly, here we are able to understand the reasons why the order book appears so unbalanced on the sales side. In any case, only time can tell us if this markedly bearish interpretation of mine is sensible or if, on the other hand, I am sinning with excessive pessimism, for now, however, my advice is to keep you well away from EOS.

Please note: this post is not intended to provide in any way financial advice related to how to invest your money but it is purely educational