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

Bitcoin made more than a $1,000 drop

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.

Take a look at Cardano (ADA) and EOS (EOS/USD) Price Analysis, Sept. 6, 2018
Have a nice day!