Bitcoin (BTC) and EOS have been dipping despite breaking key resistance levels in recently. Bitcoin has plunged below the $9,000 mark, and EOS has lost its upward spark, after a recent meteoric rise, on declining by 15%.
EOS And Bitcoin Under Pressure
The sell-offs come as a surprise given sentiments in the cryptocurrency space have improved in recent weeks. Bitcoin sentiments were high for making a push to $10,000 mark. After that, the next mark would have been $12,000. Also, stabilizing above the $9,500 handle would have been key.
The largest cryptocurrency, by market cap, has now dropped to the $8,900 mark in a continued pullback. The virtual currency faces immediate support at the $8,700 mark. Below that level, there could be declines to the $8,500 handle. Bitcoin needs to rise and close above the $9,500 handle to affirm the recent bull trend.
EOS remains under pressure after a recent pullback and failing to sustain upward momentum. The cryptocurrency is currently trading at the $16.60 handle. Some believe it looks increasingly likely to plummet to the $14.70 critical support level.
A fall and close below the $14.00 mark could cause EOS to dip to the $12.00 mark. To continue the upward trend, the cryptocurrency needs to rise and close above the $18.30 key resistance level.
Catalysts behind Upward Momentum
EOS is a scalable and flexible blockchain network based on Ethereum protocol. Last month, its underlying cryptocurrency spiked to the $22.00 mark on an announcement that the project is set to launch its own mainnet June 1st. The launch expects to strengthen the platform’s edge, putting it in a firm position to compete against Ethereum.
The launch of the mainnet should attract decentralized app developers into the platform. That, in turn, should place EOS in direct competition with Ethereum. We now wait to see if the recent pullback is a minor correction pending further movements on the upside.
Investor sentiments have ticked higher in recent weeks on reports that executives from the finance and banking industry are eyeing the fast-growing industry. Cryptocurrency demand from institutional investors has also improved in recent weeks. Additionally, this has aroused suggestion that cryptocurrency prices could climb higher from current levels.