Bitcoin has surprisingly broken bearish out of a bullish ascending triangle pattern this morning, falling below $6,600 and taking the rest of the market down with it. Up until now EOS was performing well inside a bullish pennant, with lower highs and lower lows forming as the price action began to consolidate.
Now, the asset has been kicked outside of the lower pattern support from the bear market with the RSI indicator reporting EOS as oversold.
In the EOS/BTC chart over 4hr candles we can see that the asset is now travelling through the interior support areas (green box) around 145,600 Sats and 140,000 Sats where we should expect scalp traders to take advantage of the cheap oversold token price and spike it back up into the pattern. This will depend on how quickly BTC can recover, but already we’re seeing some slight recovery there.
This is the cheapest we’ve seen EOS in just under a month, having now fallen through the 0.5 fib support at 150,000 Sats which was working well at holding the token up throughout late May and June.
Over 1hr candles we can see EOS has already begun battling out of the green zone, recovering 0.69% at the time of writing. RSI and Stochastic indicators are both showing early signs of flicking back up into the lower channel area as buying momentum swings in the assets favour.
EOS Price Targets
All price targets below will be set from the critical area around 155,200 Sats which is an area where EOS is most likely to retest in order to break back through into the pattern.
Price target 1 (Bullish): It’s likely that EOS will fail to test the resisting pattern support on the first bounce because of the current BTC market and how long it usually takes for bullish traders to regain confidence. On the second attempt, however, if sufficient support does rally behind EOS then we could see a recovery back towards the 0.618 fib level at 171,000 Sats (10.18% ROI), after passing through the critical area.
Price target 2 (Bearish): If bearish traders continue to dominate the market once EOS returns to retest the critical area, then we could see a panic selling episode hit the token hard and send it down to the lower green zone support at 140,000 Sats (-9.79% LOI), before attempting another recovery.
It will be a close call on which way it goes. Bitcoin’s wild volatility at the moment will be more than enough to break EOS trader confidence despite the recent mainnet launch, but on the other hand bullish Chinese investors might save the token, following the latest publication of the ‘Global Public Chain Assessment Index’ which revealed EOS is the most popular cryptocurrency in China right now by a long way.
This article appeared first on Cryptovest
