Augur / BTC Technical Analysis: Waning Enthusiasm
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- Augur has turned bearish against Bitcoin over the short-term with the price falling below the pair’s key 200-period moving average on the four-hour time frame
- The REP / BTC pair’s medium-term outlook is bullish with multiple inverted head and shoulders patterns seen on the daily time frame
- The daily time frame also shows near-term price action trapped inside a descending triangle pattern
Augur / BTC Short-term price analysis
Augur has turned bearish against Bitcoin in the short-term, with the REP / BTC pair trading below its 200-period moving average on the four-hour time frame.
The cryptocurrency has gradually been drifting lower, following a bearish downside breakout from a symmetrical triangle pattern on the four-hour time frame.
Technical indicators on the mentioned time frame are currently neutral, suggesting that overall selling momentum remains fairly weak at present.
REP / BTC H4 Chart (Source: TradingView)
Pattern Watch
Traders should note that the four-hour time frame is currently showing a bearish double-top pattern formation.
Relative Strength Index
The Relative Strength Index on the four-hour time frame is currently flatlined and trades close to neutral.
MACD Indicator
The MACD indicator is also neutral on the four-hour time frame and currently provides no clear trading signal.
Fundamental Analysis
In January, Augur was on the move after the announcement of Veil, which is build on top of Augur and allows users to buy leveraged long or short positions in BTC / USD, REP / USD, and ZRX / USD.
However, after a massive price increase, Augur has been trending down. Investors have been fixing profits and cooling down their expectations. Although Veil is a new step for Augur, the project still faces the same problems as before, such as low adoption and limited scalability, which hinder its growth.
Augur / BTC Medium-term price analysis
Augur is bullish against Bitcoin in the medium-term, with the REP / BTC pair trading above its trend defining 200-day moving average. Multiple bullish inverted head and shoulders are also present across the daily time frame, adding to the overall medium-term bullish bias surrounding the REP / BTC pair.
Price is currently trapped within a bearish descending triangle pattern; further bearish signs are also emerging with the daily time frame also showing a bearish triple top pattern formation.
REP / BTC Daily Chart (Source: TradingView)
Pattern Watch
Traders should note that descending triangle patterns are typically bearish and start to take shape at the end of an uptrend, which could indicate weakness ahead of the REP / BTC pair.
MACD Indicator
The MACD indicator on the daily time frame is slightly bearish, although the MACD histogram is attempting to correct higher.
Relative Strength Index
The RSI indicator is bearish on the daily time frame and is signaling that pressure remains to the downside.
Fundamental Analysis
On a fundamental level, Augur is built and dependent on Ethereum, so until Ethereum resolves its scalability issues, Augur will remain highly susceptible to speculation-driven moves.
Conclusion
The REP / BTC pair is likely to remain under pressure in the short-term until buyers start to take control of the cryptocurrency above its 200-period moving average on the four-hour time frame.
The daily time frame shows tremendous bullish potential, with the REP / USD showing multiple inverted head and shoulders pattern. The bearish triple top and descending triangle pattern on the daily time frame suggests that sellers may soon force a test of the cryptocurrencies trend defining 200-day moving average.
For a quick overview of the project, head over to our Coin Guide for Augur here.
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