Back to the machine economy and I wonder if the price of IOTA lube will keep going up or bears pressed the brake pedal two weeks ago.
In my opinion, the brakes are already pressed and it’s time to sell. Set ups like these are very rare and given the market capitalization and the resulting liquidity, sellers and buyers are scrambling for better entries.
If you haven’t noticed this IOTA over-valuation I’m talking about then you need to zoom out and check the weekly chart and see where the past two candlesticks closed at. Yes, you can argue that momentum is high given the way candlesticks are banding along the upper BB but just like everything else, corrections are inevitable.
I will consider this bear reversal pattern and sell in the shorter time frames.
When there was a mini flash on December 22, IOTA buyers though the world was ending. Indeed they were right.
Even if there was a little bit of appreciation followed by a brief consolidation, buyers couldn’t get past the middle BB. At current prices, it is obvious that higher prices are being rejected and December 27 kept the bear ball rolling.
As usual, I will use the Fibonacci retracement tool and combine it with stochastics for better entry. Given the longer time frame move, we were only taking short positions and there was no better time to short than on December 27.
Notice that when we pasted a Fibonacci retracement tool between last week’s highs and lows, IOTA prices are turning from the 61.8% level and at the same time we can see a stochastic sell signal turning in from the overbought territory in the secondary chart.
I will be waiting for sellers to break and close below $3.3 support line and once that happens, then it won’t be hard to begin toying with possibilities of sellers targeting $1.1.