EOS: weekly market analysis (from 20 January to 26 January 2020 on BTC / EOS pair)
The problem with Eos is to understand if this retracement has already ended with today's rebound (currently underway) or if it will continue in the next few days.
Let's say right away that we could also take as reference the maximum touched on Friday, so if the price breaks 43666 satoshi share we will almost certainly have a recovery of the bullish push.
However, the fact remains that the bulls cannot necessarily break the horizontal resistance in the 46500 satoshi zone (from which they have already been rejected once) so this is a very delicate phase in which it would be preferable not to anticipate the opening of a position.
Having said that, let's immediately take a look at the graphs and try to understand how things will turn in the next few days.
BTC / EOS the battle between bears and bulls will be epic
Like many other altcoins, EOS is also characterized by a strongly imbalanced order book on the sales side; the quantity of sales orders, in other words, is disproportionate to the purchase orders.
The fact that the order book is so thin on the side of those who want to buy (just a dozen bitcoins) exposes us to the constant risk of flash crashes; consequently operating in these conditions is stuff for traders with hair on the stomach.
Looking at the 1D chart, we see that we had a bullish cross of the exponential moving averages and that the ichimoku cloud also shows a markedly bullish scenario; the problem, however, is the MACD, which has already returned bearish and the inability to know whether the upward pressure will continue or not.
The good news is that no bearish divergence has yet formed, so the feeling is that the bulls are currently in control of the market; to try to define the trend in the very short term, however, it will be useful to move to a lower time frame, so let's take a look at the 4H graph.
Here what we see is that the MACD, which last week had formed a bearish divergence that allowed us to guess that we were in the vicinity of a retracement, has now returned to building a bullish divergence; this, together with the fact that the EMA100 has provided solid support for the price, suggests that the most likely scenario sees EOS going to hit a new high in the coming days.
Those who have not yet gone long on EOS would do better to wait for the break of 43666 satoshi before opening a position; this is however the most likely scenario in my opinion, however it does not make sense to take unnecessary risks by anticipating the opening of the position.
Those who have already gone long can take a positioning strategy, gradually moving the stop loss higher as the price rises; my advice is to put the SL in the 4000 satoshi zone, so as to guarantee a good profit even if the bears should return to prevail over the bulls.
Having said that, my forecast for the coming week sees a continuation of the upward trend, next Sunday we will have the opportunity to find out together if this forecast has proved to be correct or not.
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.
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