Alts have recently been percolating after a few months of persistent bleeding. I am not convinced that the crypto market has bottomed, but certain crypto assets like EOS is making a strong case that it has bottomed.
EOS/USD Daily Chart (Binance)
- The daily chart shows that price action is in a breakout attempt.
- It looks like volatility has been narrowing during the stretch of consolidation/bearish correction since mid-January.
- The 4/11 price action broke out of this narrowing.
- With strong volume, the 4/11 rally is telling us bulls are taking control of EOS now.
- The RSI pushing above 60 also tells us the prevailing bearish momentum is done.
- Price might be anchoring above the $6.00 mark.
- Still, I am not completely convinced about a bullish reversal. I can anticipate a sideways market with more confidence.
- In this scenario, I think the $8.50-$9.00 area will provide resistance. (We are already seeing some selling at $8.00.)
EOS/BTC Daily Chart (Binance)
Gaining on Bitcoin:
- EOS has been gaining sharply against bitcoin as we can see on the daily chart above.
- I think at this point, we will start to see some pullback.
- But I think EOS/BTC has successfully anchored above the 0.0008 BTC mark.
- If price comes back to 0.0009, we should anticipate support.
- A break below 0.0008 would invalidate the bullish outlook, and open up the 0.0007 and 0.0005 levels.