Since BTC is likely to influence price of EOS, investors can take profit at…


Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Bitcoin slipped beneath $38k, but sellers were unable to push prices any further south than $37.5k. It was unclear whether the buyers or the sellers are losing strength in the skirmish over the $38k level.

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If Bitcoin can climb past $39.2k, it could push much higher. This, in turn, would be important for EOS, as the change in sentiment from fear to greed could drive EOS past the $2.17 resistance level.

EOS- 1 Hour Chart

EOS forms a range after downtrend and could be consolidating above support

Source: EOS/USDT on TradingView

In yellow is the range EOS has traded within in the past few days. The upper and lower levels lie at $2.14 and $2.02, with the mid-point of the range at $2.08. The lows of the range also have confluence with the $2 psychological level.

Moreover, going back to March earlier this year, the $2-$2.05 area has been an important level of resistance. It was flipped to support around mid-March, and EOS surged from $2.05 to $3.2 in late March.

Therefore, on lower timeframes, buying the range lows and taking profit at mid-range and range highs could be a good idea. A breakout past the range highs might reverse and trap late long positions and is something to be cautious of.

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Rationale

EOS forms a range after downtrend and could be consolidating above support

Source: EOS/USDT on TradingView

The RSI on the hourly chart has been around neutral 50 in the past few hours. The 21 and 55-period moving averages (orange and green respectively) are also quite close to one another on the price charts. Together, the inference is that momentum has been neutral recently and there has not been a strong, noteworthy move from EOS yet.

The OBV, which had been in a steady downtrend in recent weeks, has been quite flat in the past few days. This meant that neither buyers nor sellers were in the driving seat overall, and instead just took turns to drive the price from the range lows to the highs and back again. The CMF was also within the -0.05 to +0.05 area.

Conclusion

Buy the range lows, sell the range highs. Simple, right? It would be, until the price breaks past the $2.16-$2.18 area. Beyond that, Bitcoin is likely to heavily influence the direction of EOS in the days to come.


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