Market Overview for EigenLayer/Bitcoin (EIGENBTC): 24-Hour Price Behavior and Market Sentiment

• EigenLayer/Bitcoin traded in a tightening range over the last 24 hours, with a low of 9.41e-06 and high of 9.97e-06.
• Price declined steadily from 16:30 ET on October 27 to 00:45 ET on October 28 before consolidating near 9.34e-06.
• Volume surged above 45,000 during the 23:00 ET candle, signaling a short-term reversal attempt before further selling pressure emerged.
• RSI and MACD indicate weakening bullish momentum, with a bearish crossover visible in the latter part of the session.
• Key support levels appear near 9.31e-06 and 9.2e-06, with resistance likely at 9.45e-06 and 9.6e-06.

EIGENBTC opened at 9.81e-06 at 12:00 ET on October 27 and touched a high of 9.97e-06 before declining throughout the session. By 12:00 ET on October 28, it closed at 9.46e-06. Over the 24-hour window, total volume reached 96,450.17 and turnover amounted to ~$9.14 million (based on average price). The pair experienced a consolidation phase in the early morning before a late afternoon surge in volume and price attempts to retest earlier levels.

Structurally, the candlestick pattern shows multiple bearish signals, including a large bearish engulfing pattern between 19:30 and 20:15 ET and a key breakdown below 9.7e-06. These formations suggest a shift in sentiment from buyers to sellers. The 20- and 50-period moving averages on the 15-minute chart have converged in a bearish crossover, indicating short-term weakness. On the daily chart, the 50-period MA continues to outpace the 200-period MA, suggesting a longer-term bearish bias remains intact.

Momentum indicators reinforce this bearish outlook. RSI dipped into oversold territory during the early hours of October 28, but failed to generate a meaningful bounce, suggesting a lack of buying interest. MACD showed a bearish crossover shortly after the 23:00 ET candle, aligning with the price breakdown. Bollinger Bands also show a contraction in volatility during the overnight hours, followed by a wide expansion as the market tested key support and resistance levels.

The volume profile suggests that selling pressure intensified during the late night and early morning hours, with a notable drop-off in the midday hours. Notional turnover spiked during the 23:00 ET candle, coinciding with the breakdown below key support. Divergence between volume and price is minimal, indicating that the price action is generally supported by underlying market activity. Key Fibonacci retracement levels from the recent high at 9.97e-06 include 9.66e-06 (38.2%) and 9.45e-06 (61.8%), with the price finding short-term support near the 61.8% level.

Backtest Hypothesis
The proposed short strategy is based on the detection of bearish engulfing candlestick patterns. These patterns are strong indicators of potential short-term reversals, especially in liquid and directional markets. Given the observed bearish engulfing formation from 19:30 to 20:15 ET, a backtest using this pattern as a signal could provide insight into the asset’s responsiveness to such setups. However, since the EIGENBTC ticker is not recognized in the backtest interface, confirmation on the correct exchange listing or the provision of the raw OHLC data would be necessary to proceed with the full backtest. The strategy could alternatively be tested on a more liquid pair, such as BTC/USDT, to evaluate general effectiveness before applying it to EIGENBTC.