IOST / Bitcoin Technical Analysis: Shaky Hold
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- IOST has a neutral short-term trading bias against Bitcoin, with price still trading outside the rising price channel on the four-hour time frame
- IOST / BTC also has a neutral medium-term outlook
- The daily time frame shows that price is trading under a rising price channel
IOST / Bitcoin Short-term price analysis
IOST has a neutral short-term trading outlook against Bitcoin, with the IOST / BTC pair trading under a rising price channel, despite the recent upwards spike.
Bulls have managed to keep prices above the pair’s 200-period moving average on the four-hour time frame, which is stopping IOST / BTC from turning bearish over the short-term.
Indicators remain bullish across the four-hour time horizon, despite the strong technical reversal in the IOST / BTC pair.
IOST / BTC H4 Chart (Source: TradingView)
Pattern Watch
Bearish pressure is likely to increase over the short-term while price trades outside the rising price channel.
The Relative Strength Index
The RSI indicator on the four-hour time frame remains bullish, although downside pressures are starting to build.
MACD Indicator
The MACD indicator on the four-hour time frame is still generating a strong buy signal, with the MACD signal line crossing higher.
Fundamental Analysis
The short term spike is attributed to the announcement of an IOST trading competition on Binance, which is being held to celebrate the launch of IOST’s mainnet.
IOST / Bitcoin Medium-term price analysis
IOST has a neutral medium-term outlook against Bitcoin, with the IOST / BTC pair still unable to move price back inside the rising price channel on the daily time frame.
The IOST / BTC pair has consistently remained above its 50-day moving average, which is a sign that short-term strength is still present over the medium-term.
Traders should note that until the IOST / BTC pair starts to stabilize above the rising price channel, the neutral medium-term outlook will remain in place.
IOST / BTC Daily Chart (Source: TradingView)
Pattern Watch
The daily time frame is showing that a bearish head and shoulders pattern could start to take shape if the IOST / BTC pair falls below its 50-period moving average.
Relative Strength Index
The RSI indicator on the daily time frame is currently generating a bullish trading signal.
MACD Indicator
The MACD indicator on the daily time frame is starting to turn higher, although the MACD line has yet to perform a bullish crossover.
Fundamental Analysis
The medium-term growth will be supported by the adoption of the blockchain. The project has already announced that the first game on IOST, after the mainnet, Endless Game, has reached over 100 million transaction volume in just 5 hours. The increase in transaction volume and further expansion in number of dApps will highly benefit the network.
Conclusion
IOST currently has a neutral trading bias over both time horizons, despite the recent strong advance in the cryptocurrency’s price. While technical indicators are bullish, a degree of caution is advisable until price stabilization occurs above the rising price channel seen on both the four-hour and daily time frames.
For a refresher course on the project see our coin guide for IOST here.
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