EOS: weekly market analysis (from 23 December to 29 December 2019 on BTC / EOS pair)

BTC / EOS reversal or bull trap?

The main difficulty when it comes to predicting which direction the EOS price will take concerns the impossibility of exploiting the 30D time frame since we are talking about a young coin and therefore on the graph we find a small number of candles; the alternative is to fall back on the weekly chart, which shows us that starting from September EOS has started to build a big bullish divergence on the RSI.

But be careful because this does not mean much, the divergences can also be invalidated and what we see on the 7D chart, in the absence of the reference points represented by historical supports and resistances, could also prove to be the formation of a bearish continuation pattern. Looking at the 1D chart, in fact, the ichimoku clouds show us that we are still in a bearish scenario and the MACD seems to be forming a bearish divergence; setting the bollinger bands, then, the feeling is that the current bullish pressure should end soon and send EOS back to a new low.

We have a completely different perspective by setting the exponential moving averages to 20, 50 and 100 periods; this allows us to notice how the price has returned above the EMA20 and the EMA50, the pressure of the bulls, therefore, could continue until the price to test the EMA100 in the 0.00038BTC zone, at which point, however, the price will inevitably be rejected.

Moving on to a shorter time frame, at four hours, however, we note that the EMA20 has cut upwards both the EMA50 and the EMA100 and that the same exponential moving average at 50 periods is preparing to do the same with respect to the EMA100; this is a decidedly bullish signal, however there is no convergence of bullish signals on the higher time frames and this is what leads us to be wary of this price movement.

Weekly forecast

I personally believe that the price of EOS will continue to rise in the next few days until reaching around 0.0004BTC, at which point we will have a heavy retracement and we will have to check if the price will score a new minimum or if the fall will stop earlier .

In short, at the moment I am still bearish on EOS, although I am probably wrong and I will have the opportunity to change my mind in a couple of weeks; even if my reading turns out to be wrong and it turns out that we are in a phase of inversion it is not however the case to get caught up in the hype now, if EOS were to be bullish there will still be a pull back in the next few days so what we have to do to do is continue to monitor the situation to be sure not to be cut off if a bull run starts.

Please note: this post is not intended to provide in any way financial advice relating to how to invest your money but has purely educational purposes.