A_Cryptastic_Mind

NEO and the downtrend – when will it end?!

BITFINEX:NEOBTC   NEO / Bitcoin
As I posted previously, I noticed a rising wedge ( bearish ) in NEO’s price pattern (also see “1”).

Previous post graph:



In the meanwhile, that pattern has held true, first resulting in a sideways trading range (see the rectangle in “2”).

Support (“3”) was broken in early March, prolonging the downtrend started in February. We are still in that downward trend channel (see “4”).


When will it end? Well… I guess we all noticed the turmoil in Bitcoin’s chart, especially yesterday, bottoming again around $8K.

For the moment, it’s best to wait this one out, as long as NEO’s in the downtrend, best to stay away or HODL. The fundamentals remain good, but never argue with the trend. Wait for a trend reversal + confirmation and then buy back in / buy more / simply enjoy the ride back up.


In the meantime, do notice that we have a nice bullish cross in the making in 7 and we have an oversold RSI in 8. Also note that they are both still trending downward. But at least we are heading in the right direction. For illustrative purposes, also check the last bullish cross in 5, and the bearish cross in 6.

I highlighted the Fibonacci levels, and as you can see, the previous support in 3 coincides with the 38,2% level. We are now trading between the 50% and the 61,8%.


Don’t let that negative price action get you down!

PS1: please like this post if you like it :p
PS2: this is not investment / speculation / gambling advice, DYOR :-)
PS3: always great to have you following on twitter for the latest stuff and fundamental analysis!


All the best
Mar 15
Comment: I will update this idea as of ten likes - matter of keeping me motivated that you want to know the sequel :-D
Mar 21
Comment: As you can see we had a low test in A,
followed by a Heikin Ashi doji in B (hinting trend reversal)
And we found support in C on the 61,8% Fibonacci retracemen (green horizontal).

Out of C, we are getting ready to test resistance of the downward trend channel. Note how we have both RSI and MACD in quite bullish areas!

Also note that the market is still quite fragile and the trend could shift one moment to the other.



When we zoom in, we see some downward pressure, but still higher tops and higher bottoms (which for now keeps the upward subtrend intact):
Mar 21
Comment: Keep a close eye on what happens in the C area - we want to keep having those higher bottoms and tops, and find support in C to get ready to test the resistance. Otherwise we might see us falling right back to the overall support line of the trend channel.
Mar 28
Comment: "Don't fight the trend" ;-)
Thank you!
Reply
@VittorioD, yw!
Reply
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