As has been the case with many projects whose altcoins are paired with BTC, the surge in BTC prices in 2019 has not been a very good thing for many of them, as the pairings have actually brought on an inverse relationship with the BTC/USD pair.EOS ( EOS-USD ) is one of those coins that has taken such a massive hit in 2019 that it’s now challenging support levels not seen for quite some time.
Now that we have this background, what is the price outlook for EOS/BTC in September 2019?
Fundamental Outlook It was reported that the EOS project has been given some airtime on Chinese television .The program called “ICS Money Talks” has a large segment dedicated to blockchain gaming.It’s possible that being featured on this program may have introduced EOS and its potential for blockchain gaming to the Chinese market.
EOS/BTC will continue to find some inverse correlation with BTC/USD prices.As predicted, a stall at the 10,600 – 10,700 resistance area on the BTC/USD chart may be followed by another move south for BTC, which may give EOS/ BTC a lift.
Technical Outlook EOS/BTC continues to remain in a downtrend, with the price action now testing a support level at 0.0003198.This downtrend has been reinforced lately by BTC’s latest surge against the USD.
EOS/BTC Daily Chart: September 3, 2018
Long-term resistance is seen at 0.0005051 (April and December 2018 lows now functioning in role reversal).Below current levels, support also is found at 0.0003124 (pre-2018 lows).
A deeper look at the EOS/BTC pair on the four-hour chart reveals that price action is contained within a falling wedge pattern, with the price still having enough room for further downside movement from the upper wedge border.
EOS/BTC 4-hour Chart: September 3, 2019
Any further moves to the downside will have to contend with support from the August 27/28 low at 0.0003124.
The oscillator also is seen to be heavily oversold, but the signal line remains flat and is not trending upwards.
So what are the possible trade scenarios for traders wishing to trade the EOS /BTC crypto pair?
Trade Scenario 1
The bearish sentiment for the EOS/BTC pair remains.In the near term, price is expected to continue trending downwards within the context of the falling wedge, with plenty of room for further downside.Price is therefore expected to at least test the immediate support at 0.0003124.
The further downside will depend on further surge of BTC against the US Dollar.Presently, Bitcoin is about to test a key resistance against the US Dollar.If BTC is able to break this resistance, more downside for EOS/BTC is to be expected.
Trade Scenario 2
It’s also possible that an upside breakout will result following complete evolution of the falling wedge formation.
For this to happen, BTC needs to resume its downtrend against the US dollar.
This may soon be on the cards if BTC/USD is not able to surmount resistance at just under 11,000.
Market Sentiment: T he long-term, mid-term and short-term outlook of the EOS/BTC pair is:
Long-Term – neutral Mid-term – neutral Short-term – bearish Long-term and medium-term sentiment for EOS is neutral, as ther e’s very little movement from the project to provide a basis for a price recovery.Some more selling may be seen before price recovery as a result of the near-term sentiment.
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.I wrote this article myself, and it expresses my own opinions.I am not receiving compensation for it (other than from Seeking Alpha).I have no business relationship with any company whose stock is mentioned in this article..
