EOS/USD dropped significantly, but this bearish movement is understandable after the Bitcoin’s crash. A Bitcoin’s further drop will push the EOS much deeper in the upcoming period. The next days could be crucial because the Bitcoin approaches a very strong dynamic support and the former low, so a further drop towards the 3000 psychological level it will force the EOS/USD to pass below another critical support. If you’ll read the previous Bitcoin reports you will notice that I’ve talked about a potential leg higher if the rate will respect my scenario.
EOS/USD decreased after the failure to reach and retest the median line (ml) of the sideways pitchfork and the upside 50% Fibonacci line of the descending pitchfork. As you can see, the rate is trading much above the inside sliding line (SL1). It has ignored the 3.0000 psychological level and now moves towards the 2.0000 psychological level and towards the first warning line (wl1) of the sideways pitchfork. It remains to see what will happen when the price will hit the mentioned potential support levels, one thing is certain, the perspective remains bearish as long as it stays below the upside 50% Fibonacci line of the major descending pitchfork.
We may have a potential rebound if the rate will make a valid breakout above the upside 50% Fibonacci line.
A further drop will be confirmed by a valid breakdown below the warning line (wl1) of the sideways pitchfork. Price could bounce back also if it will fail twice to approach and reach the inside sliding line (SL1) of the major descending pitchfork.
We have a very strong support at the sliding line (SL), but the rate has failed to retest it and it has run away also from the median line (ML) signaling that we may have a reversal if the rate will have enough energy to take out the dynamic resistance from the 50% line.