After the abrupt pullback in EOS over the past 36 hours following a steep run up, I present the below chart for thought on future price levels.
The March low of $4.16 was put in place creating a short term bottom. The yellow star indicates a confirmation that the downtrend was over with the higher red line showing previous resistance becoming support.
The top put in place this week of $22.86 created a total short term range of $18.70. The first major Fibonacci pullback level is 38.2% of this range, or a pull back of $7.14 from the high.
We have already seen a pullback of approx. 31.8% suggesting short term pullbacks may be slowing. If prices fall below the 38.2% retracement levels, we would expect more declines to continue until 50%. If prices hold, we should expect price to return it's upward momentum and breakout above the previous highs towards the $30 level.
Good charting. Is this current price movement predictable because of fibonaccio retracement levels, or is it because of the recent bad news?
I heard something about the EOS blockchain being tested by hackers prior to launch, and they located a bug which the hackers successfully exploited to totally screw up the current EOS test environment. It is good that the code is being tested in this way prior to the official launch of the blockchain because, what seems like "bad news" to most is actually good news to me: they are thoroughly testing EOS's code to improve security, remove bugs, and ensure strong security with their blockchain launch.
However, I believe this is what caused a termporary "FUD" environment and led to the current price decline. It's one thing to do the TA and know where levels of resistance and support lie, yet quite another to figure out the "why" of the movement. Both points of information are vaild and need to be considered.
In my opinion, this pullback - which I believe will be very short lived - provided me with a great opportunity to "buy the dip" and go longer on my EOS position. I did just that.
I gave you an upvote and a resteem.
Thanks! You are absolutely correct regarding the dual nature of movement. The TA is more about finding entry/exit points than being catalysts for retracements.
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