AVAX remains bullish, but long-term investors should wait for this level

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.

• A degree of help with a pocket of liquidity at $18 meant Avalanche retained sturdy help regardless of current promoting.
• A Bitcoin crash beneath $22.3k might make shopping for Avalanche dangerous.

Bitcoin [BTC] fell beneath the $23k mark over the previous few hours of buying and selling. On the time of writing, a lot of the crypto market stood within the purple for the day. Avalanche [AVAX] additionally famous losses throughout the day’s buying and selling. The asset fell from $20.24 to face at $19.73, a lack of 2.5%.

Practical or not, right here’s AVAX’s market cap in BTC’s phrases

Larger timeframe evaluation confirmed that Avalanche could possibly be set for a dip towards $18.7 and the $17.8 ranges. Bullish merchants can anticipate a bounce and a decrease timeframe bullish market construction earlier than on the lookout for entries to lengthy positions.

Larger timeframe bulls can anticipate AVAX to drop into an space of curiosity

Supply: AVAX/USDT on TradingView

The market construction of Avalanche remained bullish on the one-day timeframe. To the south, beneath $19, it has the next timeframe degree of significance at $18.6. The zone from $17.5-$18.6 represented a pocket of liquidity.

In mid-January, many candlewicks on this zone had been rejected on decrease timeframes. This meant that, at the moment, sellers had been dominant on this zone. When the $18.6 degree was breached in late January 2023, it signified bullish dominance. Therefore, a retracement into this pocket of liquidity would doubtless see sturdy patrons.

Additional south, AVAX has a degree of help at $16.8 and at $15.77. A day by day session shut beneath $15.77 will flip the construction to bearish. Till then, patrons can look to bid at vital help ranges, though it could possibly be dangerous.

The RSI was falling towards impartial 50 to indicate bullish momentum was waning. In distinction, the OBV was rising to indicate shopping for strain.

Open Curiosity falls, however funding fee stays constructive

Supply: Coinglass

How a lot are 1, 10, 100 AVAX price at present?

Open Curiosity spiked upward on 28 January. Since then, it has made a sequence of lows. Throughout the identical interval, AVAX reached $21.6 and pushed greater to succeed in $22.75. By this time, the OI had already weakened, to not point out the bearish divergence the RSI made with the worth.

The funding fee remained constructive, which steered market contributors had been bullishly positioned and haven’t but flipped strongly. General, patrons seeking to maintain AVAX for a number of weeks earlier than promoting can anticipate a bullish response throughout the market earlier than shopping for, and reduce their losses to a drop beneath $15.7.