Market Overview for EigenLayer/Bitcoin (EIGENBTC)

Summary
• Price tested key support near $0.000004.01, forming a potential bullish reversal pattern.
• Volume surged during the 16:45–17:00 ET window, coinciding with a sharp price decline.
• RSI remained in oversold territory, suggesting a potential short-term bounce.

The pair opened at $0.000004.21 at 12:00 ET - 1 and closed at $0.000004.02 at 12:00 ET. The session saw a high of $0.000004.21 and a low of $0.000003.90. Total traded volume reached 16,803.36 with a turnover of approximately $0.0695.

Structure & Formations

Price tested a key support zone around $0.000004.01 during the early hours, which coincided with the appearance of a potential bullish reversal pattern. However, this support did not hold under pressure in the late session, leading to a breakdown below critical levels. A bearish engulfing pattern was observed around 12:15–12:30 ET, signaling bearish momentum.

Moving Averages

Short-term 20-period and 50-period moving averages on the 5-minute chart indicate bearish alignment, with the 50SMA below the 20SMA. On the daily chart, the 200-period SMA remains a distant reference point, while the 50-period line currently sits above the 200SMA, suggesting a broader bearish bias.

MACD & RSI

The MACD remained bearish throughout the session, with the signal line crossing below the zero level and pulling further away. RSI readings consistently hovered near or below 30, signaling oversold conditions. However, RSI failed to rebound significantly, suggesting weak conviction in any short-term bounce.

Bollinger Bands

Volatility expanded during the 16:45–17:00 ET window as the price broke below the lower band, confirming a bearish breakout. Prior to this, the bands had constricted slightly, indicating a potential move, but the direction was decisively bearish.

Volume & Turnover

Volume spiked during the 16:45–17:00 ET candle, which saw a sharp drop in price to $0.000003.90. This increase in volume confirmed the bearish move rather than contradicting it. Notional turnover during this period was among the highest of the day, reinforcing the legitimacy of the breakdown.

Fibonacci Retracements

A 5-minute swing from $0.000004.21 to $0.000004.06 saw a pullback to the 38.2% retracement level, which failed to hold. On the daily chart, the 61.8% retracement level of a larger move is now near $0.000003.90, which was recently tested and could serve as a key short-term support or reversal point.

Price may find temporary support around $0.000003.90–$0.000004.01 in the next 24 hours, but given the bearish momentum and lack of a convincing reversal, a further test lower could follow. Investors should remain cautious and watch for any divergence in volume and price action before expecting a meaningful bounce.