Week in Crypto (Top 3 Events):
#1 - Baakt continues to make headlines and progress in launching their proprietary digital asset market place that will offer a institutional grade custody program combined with a fully regulated digital asset exchange and physically delivered on Bitcoin . Understanding their partnerships with Starbucks , Microsoft as well as their relationship with I.C.E ( Intercontinental Exchange ) which operates traditional exchanges like the NYSE is a news worthy event to follow in the coming months. In the past two weeks they have closed initial funding rounds and have raised over $180M. This week they are on a hiring spree for core developers. Follow their twitter for the latest updates.
#2 - Jack Dorsey - CEO of Twitter - was recently on the Joe Rogan podcast promoting Bitcoin and digital assets as a revolutionary technology. He believes Bitcoin will become the world currency in our lifetimes as it was born on the internet and will become the currency of choice of the internet. Square continues to outperform on the stock market and allows for bitcoin payments to be sent and received via their app as well as fiat.
#3 - Dan Morehead - CEO of Pantera Digital has said recently despite the market sentiment in prices the fundamentals in the ecosystem have never been stronger. He believes all the innovation and infrastructure that is being built to accommodate institutional investments has calmed any doubts whether blockchain technology and Bitcoin is here to stay or not.
Despite the positive fundamentals what does the technical picture tell us?
BEARS - EOS bears successfully completed the death cross back on July 14th, 2008. Since then EOS has been trading in a . Every pullback has been met with a fierce defense by the bears. Despite this, EOS has been one of the alt coins that has outperformed since the market capitulation back in December. If bears are successful in pushing prices back below $1.95 this could ensue panic selling. We don't feel EOS has reliable historical support from 2017 as the coin rallied from 30 cents to over $12 in a short period of time. We feel a more probable support would be a drop to the 161.8% to around 54 cents in a full bear mode scenario. We feel there is enough of a risk/reward ratio to place a short if the bears are able to break below our short entry price.
BULLS - EOS bulls will not gain ground until a high event propels the coin above the 50 Day as well as the top of the . We want to be conservative going long in this pronounced bear market and patience is the name of the game. Therefore, we are suggesting to wait to place any buy orders until the bulls break above the channel at $2.70 at the time of writing. We will update this entry price as the market develops and possibly to lower levels if price continues to dip. The 200 Day MA (Blue ) is sitting around $4.50. Until EOS breaks above its 200 Day MA we will remain bias.
Falling Pattern: reversal pattern marked by lower highs, but the lower lows is flattening signaling that the bears are losing their grip on the market. This is traded normally as a reversal pattern when found at the bottom of a downtrend.
RSI - Positive divergence and is in neutral territory around 48. Strength will be reflective once approaches 60.
Trade suggestion: We are not recommending any trades until there is more market clarity whether you are a bear or bull. Be patient for interesting prices.
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