Market Overview for EigenLayer/Bitcoin (EIGENBTC)

• EIGENBTC declines 3.5% over 24 hours, closing near key support at 8.24e-06
• Volume surges in late session, but price consolidates amid weak momentum
• RSI dips toward oversold levels; Bollinger Bands narrow, hinting at potential breakout

EigenLayer/Bitcoin (EIGENBTC) opened at 8.57e-06 on 2025-10-31 at 12:00 ET, peaked at 8.59e-06, and closed at 8.24e-06 on 2025-11-01 at 12:00 ET. Total trading volume reached 121,356.73 units, with notional turnover of approximately $1,004,734 (based on average price of 8.27e-06). A bearish divergence in price and momentum suggests ongoing selling pressure amid a potential near-term reversal setup.

The 15-minute candlestick pattern shows a clear bearish trend, with a deep pullback from the 8.59e-06 high to the 8.24e-06 support. A notable bearish engulfing pattern appears at 2025-10-31 19:30, confirming the shift in sentiment. Resistance levels are found at 8.39e-06 and 8.46e-06, both of which failed to hold during the late evening and overnight selloff. The 20-period and 50-period moving averages on the 15-minute chart are in a downward bias, reinforcing the bearish bias.

Relative Strength Index (RSI) indicates oversold territory, dipping below 30 as of the final 15-minute candle. While this can signal a potential short-term bounce, the MACD remains negative with a bearish crossover, suggesting continued selling pressure. Bollinger Bands have contracted throughout the session, pointing to a period of consolidation. The price is currently testing the lower band, a sign that volatility may soon expand.

The Fibonacci retracement levels drawn from the 10:31 high at 8.59e-06 to the 01:15 low at 8.24e-06 show that the current price is nearing the 61.8% level at 8.31e-06. This may act as a short-term support level for a potential bounce. However, a break below 8.24e-06 could target the next retracement level at 8.14e-06. Volume has spiked in the final hours of the session, indicating strong bearish conviction despite the low RSI reading.

Backtest Hypothesis
To evaluate the viability of a short-bias strategy based on this bearish trend, a structured backtest is required. A potential rule-based approach could involve entering a short position at the open of the bar following a confirmed bearish engulfing pattern (e.g., at 2025-10-31 19:45), with a target set at the 61.8% Fibonacci retracement level of the preceding swing (8.31e-06). Stop-loss could be placed at the 38.2% retracement level at 8.38e-06. A maximum holding period of four hours and a 5% stop-loss on the trade would add risk management constraints. This method would be tested using historical data from 2022 to 2025 to determine its profitability and robustness.