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Bitcoin, NEO, Cardano, EOS Ready to Bounce After Drop: Crypto Price Analysis, Sept. 6, 2018

Thu, 09/06/2018 - 09:27
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Vaido Veek
Bitcoin made more than a $1,000 drop
Bitcoin, NEO, Cardano, EOS Ready to Bounce After Drop: Crypto Price Analysis, Sept. 6, 2018
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*** Please note the analysis below is not investment advice. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of U.Today. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin- all strong supports are broken, only one left on the current price

Yesterday we said that if the price closes below the strong support line (blue line) and below the minor upper trendline, which is also a part of the continuation pattern "Rising Wedge,” then we will drop into the $6,500 area.

Currently, we are in this area. In August, we attempted to break above this level many times and currently, the old resistance becomes a support.


RSI is totally oversold and we made over a $1,000 drop which is massive. So, we could guess that we could find a small support from here and this support will guide us may be around $6,700. There is a historically strong level which started to work as a resistance and from the current drop points (high to low) pulled the Fibonacci retracement to 38 percent in this area.

Currently, we just have to wait and see what the price action shows us, maybe we can find something positive! Let's take a look at how the altcoins react to this "market crash.”

NEO (NEO/USD) trades below the upward channel

Since yesterday, NEO came down ~26 percent and we trade below the channel and below the round number $20!


We got a bounce from $18 where the Fibonacci retracement level is 62 percent and from the support which was there before the resistance (black line). On the four-hour chart, we trade below the EMA's, actually, in all timeframes we trade below the EMA's and that's not a good sign, like we said, we have also a breakout downwards from the upwards channel.

If we want to search for some positive signs then at the moment NEO price is in the area where it still could make a higher low, after the bounce from the Fibonacci level we got a "Hammer" candlestick pattern, but this is a very small pattern because there is still panic in this market.

A close below $18 confirms a lower low and in addition, we have a change in the price structure which will indicate that we may come down and retest the $13 area. But if BTC finds the support from the current price then NEO will follow suit because it looks solid compared to others altcoins.

Cardano (ADA) only support that hold us is August low

Currently, Cardano trades 20 percent lower than yesterday and after the market “crash” the only support holding us is the August low.

At the moment we trade above the major down-trendline but if we retest this trendline then we test pretty low levels. Depends on how fast we can make the retest but we may go as low as $0.062.

Cardano (ADA)

The market structure is smashed because we have made a lower low and currently guessing where we could make a bounce upwards is a pure lottery.

EOS (EOS/USD)- at least some supports below the current price

Since yesterday, EOS is down 23 percent, not surprising because we have the bloody days on the market.

Currently, we have found a support from the round number and the trendline cross area.

At least EOS has some supports below the current price where we can watch the price action, unlike the others altcoins.


At the moment the price made a stop and just a little bounce upwards. The bounce formed a bit sloppy "Hammer" pattern. If the market is healthy then it would be a nice buy opportunity but not right now because the market is still under pressure and full of panic.

If the trendline can hold us then we can make a higher high which is a very good sign considering this market situation.

If we start to drop lower then we break the trendline and end up at the $5 round number area and our next stop will probably be $4.1. There is the August low of $3.8, there is the March low and also 2018 low.

But currently, we have to watch what BTC does and if it shows some positive signs. If it finds a support then we definitely have a good opportunity for EOS to start climbing higher because the platform is actually pretty solid.

Hopefully, this helps you out a little bit to confirm your own analysis. Definitely, do your own research!

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About the author

Vaido Veek hopes to become a leading voice in technical analysis by educating people about how the perfect TA  should look like. He has over 5 years of charting experience and loves to solve the patterns that   they show us. His slogan is "keep it simple"!