There is blood in the cryptocurrency streets and it’s time for IOTA to give back to the society as they say. Of course, we cannot take anything away from the value IOTA tokens seek to solve and I must say, with every bear candlestick that is printed, buyers are finding another reason to buy. Let’s average out our position they say J
Our penultimate bear target, given the rate of depreciation, is at December 22 lows at around $1.1. It seemed farfetched a couple of weeks ago but right now, it’s a grim reality for those who bought at peaks. Statistically, bears have recovered more than 65% of what buyers gained when the rally begun sometimes in October 2017.
Considering the current price action which by the way is dangling right at middle BB or our main support line, sellers have to wait and see what happens over the weekend and most importantly where the close will be at.
As IOTA is a token supporting a real project, it would be ideal if buyers inject some momentum and push back prices above $2.
In the daily chart, price action is pretty much self explanatory. Bears are in charge now that the lower limit of our consolidation marked by the 61.8% Fibonacci retracement level was broken after yesterday’s tumble.
In the days to come, we shall see how prices react first at the 78.6% retracement level at $1.43 before $1.1 and during that time, resistance shall be found at $2 and the middle BB.
Of course bears are in charge but you know what? Buyers might actually snap back temporarily and retest the main resistance trend line as shown on the chart.
Reason? Well, our Fibonacci extension line hints at possible support at the 1st Fibonacci level at $1.724 and do you notice the pause? In my opinion, I’m not recommending shorts-prices are obviously over extended and trending above average weekly range.
Plus, prices are below the middle BB in the middle chart so I recommend keeping your cards close to your chest. Word before the weekend: Patience!