This feels somewhat redundant, Bit Brain recommending a NEO buy. It's like Winnie-the-Pooh recommending honey.

It is true that I always recommend buying NEO. Even at its ATH I think it was a good buy. NEO has not even begun to flex the full might of its muscles yet. Instead it sits at the bottom of the top 10, or just beneath it, biding its time as the other platforms (EOS, Cardano, Tron, Stellar and IOTA) play childish games of one-upmanship against each another. NEO sits back, calmly sharpening its green swords and applying black camouflage cream to its face. NEO knows that it is part of a Smart Economy that is far greater than anything that those other platforms have. NEO knows that comparing the average NEO DApp to an Ethereum one is like comparing a Rolls Royce to a VW Golf. NEO is not interested in jostling for position with lesser coins, its focus is set on higher things. On NEO's swords are inscribed the words "Ethereum" and "Bitcoin Cash". (NEO doesn't even consider Ripple to be worthy of contempt.)

Banter aside; why is Bit Brain recommending NEO at this particular moment?

From https://www.etsy.com/listing/578374764/scimitar-swords-set-with-personalized; modified by Bit Brain

BUY recommendation : NEO

I base this recommendation on the market dominance of NEO. I'm using market dominance for this post and not BTC price because BTC dominance has changed so much during the last year. I believe it's probably more accurate to compare NEO to the entire market rather than just BTC alone. Let's take a look at the chart:

From https://coinmarketcap.com/charts/

Most coins have their own patterns vs BTC / the entire market. Certain cycles repeat. NEO is no exception. It seems to run in a series of triangles typified by very steep, rapid price climbs and then a staggered fall over a long duration. I have identified four such patterns throughout NEO's history. If you want to take a look at them yourself, analyse the entire NEO chart (either market dominance or BTC price) and zoom in on the areas starting in: September 2016, June 2017, August 2017 and January 2018.

If I'm right about these patterns then it looks like NEO is approaching the bottom of its current price drop. As the general trend of NEO is to increase in market dominance it is a good investment. But because NEO tends to climb so fast when it does climb, it's a good idea to already be holding NEO when such a climb begins. For this reason I would rather buy NEO a little early, even if it means that the price drops a bit more vs BTC before it starts to climb. It is my experience that trying to time the exact bottom and top of a price drop or climb is a fool's errand and only ever occurs by luck alone. Trading anywhere close to a price reversals is good enough.

It is also worth mentioning that the NEO price has been dropping more (in terms of percentage) than the BTC price during the bear market periods. But during the last 48 hours I have noticed that that trend is reversing. I may be calling this way too prematurely, but I believe that the NEO price drop is slowing down and that it is preparing for another bull run.

From https://coinmarketcap.com

Take a look at the dominance chart in more detail to see what I mean:

From https://coinmarketcap.com/charts/; modified by Bit Brain.

The big green and red arrows are fairly obvious; they are the major NEO price climbs and falls respectively.

The smaller purple arrows show the general direction in which NEO tends to move when it isn't going through radical price changes, what I consider to be its natural market dominance trajectory.

The very large semi-transparent light blue arrow is a combination of all the others and what I consider to be NEO's mean dominance line. Obviously NEO is currently below this line; therefore I believe that another major NEO price increase is in order. Looking at the chart, and considering that NEO has been losing ground vs BTC for five months now, I think that this is a realistic expectation.

How certain am I?

I won't lie: I'm not as certain as I would like to be. The usually volatile crypto market is more volatile than ever. But, as always, I'm sticking firmly to my long-term positive trendlines for crypto and I'm equally firmly of the opinion that the market is oversold and ready to climb again. Crypto news grows more positive by the day and the fundamentals are all in place for a major bull run. It's not a question of "if", it's a question of "when".

I don't know when that "when" will be, but I will tell you this. I bought BTC with fiat today and I've already sent that BTC to an exchange where I can trade it for NEO. I'm watching the price very carefully right now, trying to choose a suitable buy point.

Other considerations

I tried looking at the order books to assist in my decision making, but they are sending mixed messages. If you are going to look at them then ensure that you look at a few different ones, because they contradict one another.

If you would rather work with the BTC price of NEO than market dominance, then here it is. You will notice that it is very similar.

From https://coinmarketcap.com/currencies/neo/#charts

Final note

You can order your own scimitars such as those pictured in the first picture by clicking the link I posted beneath it. The real ones aren't green, but you can customise what you want laser engraved on them! A set of Ethereum and Bitcoin Cash murdering weapons could be yours for as little as $95.00...

Yours in crypto,
Bit Brain

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Published on

by Bit Brain

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