I'm going to focus on the big picture today. A wide look at the 4 hour chart reveals a bull flag.
EOS bounced off the 0.618 fib level, gained some short lived momentum, and now seems to be dropping. I believe it will drop back down between the 0.168 and 0.65 fib levels. As I explained yesterday, this is known as the "golden pocket". This would be a logical spot to expect an impulse wave up.
The 4 hour RSI is moving up within a rising wedge. A breakout above this wedge could indicate an impulse wave. A break below this wedge could indicate a drop below the golden pocket I discussed. If this happens, bitcoin may drop to the 0.786 fib level.
Looking at the 1 day chart, EOS is has found support on the 55 day EMA. So far, the daily candle is looking bearish. It's got a long wick on top signifying it tried to breakout, but the bears were too strong...pushing it right back down. If the candle closes this way, it could signify a drop to come. Let's see how it closes today.
Looking at the 4 hour MACD, it's starting to move mostly sideways in a consolidation pattern.
There's a support zone between $11.65 and $10.85. We may consolidate further before making any major moves. Keep an eye of the RSI channel I pointed out above. Until EOS breaks above or below that channel, we will most likely see sideways movement that may look like this:
I pointed out yesterday that there's bullish divergence on the 4 hour RSI (If you're unfamiliar, that's when the price declines as the RSI rises).
This is a sign a trend reversal may be coming soon.
As stated earlier, the 0.618 fib level is a prime place to expect a breakout. Should that happen, it may look like this:
If it breaks below the orange support zone, I'll have to re-evaluate my analysis. Right now EOS is still tied to bitcoin. If it drops, EOS will most likely drop. If not, from a technical point of view, EOS could breakout in the very near future.
BIAS:
Short Term: Neutral
Longterm: Bullish
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.
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Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly.
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Excellent technical analysis. Are you keeping your EOS tokens on Binance during the transition to EOS coins?
Thanks @kevindixon. I keep EOS in my own private wallet.