Welcome to my latest NEO VS BTC analysis! Being the nice guy that I am I now present you with two options! Let’s get straight into shall we?

As you can see NEO has been retracing since 30-01-18 until 07-04-18 when we finally found a bottom. Since then we have fallen into a small uptrend channel .

Now it’s definitely worth noting that the 12 EMA crossed over the 26 EMA around the 17th/18th of April. Shortly after on the 22nd of April we tested just how much support these could provide and ultimately pierced back down through the 12 EMA and twice tested the 26 EMA as support. This gives an indication that there is some support here, though it is not as strong as it may appear on the surface, though at time of writing we opened trading back above the 12 EMA which is a good sign. A sustained breakout within the next few days above the 12 EMA and above the 23.6 Fib level would likely see us shoot up to test the 78.6% Fib (Blue arrows) as there is really no resistance between where we currently are and the 78.6% Fib.

In addition and on the flip side; we are also currently re-testing the resistance of the 23.6% Fib level after a failed break out between the 18th and the 21st of April. Given that these levels are often tested at least twice; and the formation of a descending triangle (shown in Black) – there is a definite chance we could break to the downside (Red arrows) and form a double bottom back to where we were on the 7th/8th of April. Though if this does occur, it’s very likely that once we have double bottomed we will see a meteoric rise back up through each fib level to test the 78.6% fib level as buy volumes are likely to be huge.

Some other points of mention:

• The MACD is still trending above the signal line, though there is not a huge amount of momentum indicating this could definitely go either way.
• RSI supports the above point.
• Aroon Up is high which is bullish , however it has started to trend down slightly. Likewise Aroon Down is flat to the ground so these are both indicating indecisiveness in the market.

In conclusion will NEO take the Red Pill or the Blue Pill? Well for short term trading I am neutral and holding off from making a trading decision in the immediate short term (next 3-7 days) until we see a sustained breakout above the 23.6% Fib level or alternatively a break below the descending triangle . Longer term I am bullish either way and expect a test of 78.6% Fib to be completed by mid-May!

As always trade safe and DYOR!

Cheers