Bitcoin [BTC] and EOS price analysis: The Cryptocurrencies Lack Fresh Catalyst to Initiate Price Gains

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Bitcoin [BTC] Price Technical analysis

Bitcoin [BTC] price is retreating from trading above $9,000 on Wednesday following an entirely new theory in the market that is fascinating cryptocurrency traders. The investors are taking time to analyze the new conspiracy theory that was unearthed by Intercept. The media platform is best known for its ‘adversarial journalism.’ The rumors are that the United States National security Agency created a software that can gather information from users capable of revealing identity when using Bitcoin.

The software is referred to as MONKEYROCKET and is necessarily a VPN resembling service. However, it does the opposite of VPN by sending user data to NSA. The theory is amusing because many of the 16,000 users registered on the software are mainly from China and Iran. This means that Bitcoin is not so anonymous. It could also be the reason why Bitcoin price is reversing the trend.

Technical Analysis

Bitcoin [BTC] is currently retreating and is lacking a fresh catalyst to reverse the downside momentum. BTC/USD has been trading above $9,000 since the opening of the trading session on Wednesday 21. The currency is correcting lower and has broken below the short-term support level at $8,950 which is also the 50-simple moving average trend line.

The next support level for the decent is the 23.6% Fibonacci retracement level with the previous swing high of $9,150 and a low of $7,360. The 100-simple moving average meets the shorter term 50-SMA to show that Bitcoin price will retrace towards the $8,500. At the moment there is a growing bearish trend line around $8,900.

The MACD trend indicator is in the negative to confirm the increasing selling pressure. BTC/USD must find support at $8,800 level to prevent further price declines towards $8,500. On the upside, the immediate resistance level for Bitcoin [BTC] price is at $9,155. However, the crucial barrier in the path of recovery is at the $9,000 level. The bulls in the market must find a pivotal point to reverse the momentum and avoid more losses.

EOS Price Technical Analysis

EOS price is in ranging channel and seems to be consolidating around $6.100 level. The crypto is exchanging hands between $6.310 and $5.590. The bulls have been holding ground after the just-concluded G20 summit in Buenos Aires. The countries agreed that the digital assets have risks that should be kept in check. This will be carried out through monitoring and does not require banning. The deadline for regulation has been set for June 2018.

EOS price, along with the rest of the cryptocurrencies is busking in the wake of the summit that did not immediately impose regulations. The price is trading below the 100-simple moving average which acted as support at $5.900 level. EOS/USD is up by 2% during trading in the last 24 hours. The general stability in the cryptocurrency market has kept EOS price above the 23.6% Fibonacci retracement level with the previous high at $6.200 and a low of $3.900. There is a bearish trend that is coming into shape around $6.100 as shown by the MACD momentum indicator.

On the upside, the immediate resistance at $6.200 is in the path of price recovery. EOS must break above this level to open the door for more gains towards $7.000. On the downside, the immediate support level $5.900 might not be strong enough to stop declines in case price movement is to the downside. The next support level is the 23.6% Fib retracement level.


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