THETA presents buying opportunity on a pullback after…
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
In June, Bitcoin posted a low of $17.8k on the charts. In July, Bitcoin adopted that growth up with a better low shaped at $18.7k.
Over the previous month, Bitcoin has continued to set greater lows. Simply as importantly, the worth additionally broke the $22k barrier earlier this month.
This broke the bearish market construction in a medium timeframe and arrange a path for Bitcoin to push greater. Theta Community’s token has traded inside a variety whereas Bitcoin moved greater.
Nevertheless, previously couple of weeks, THETA confirmed bullish intent because it rose above the $1.3 mark.
THETA- 1-Day Chart
Supply: THETA/USDT on TradingView
On the each day timeframe, it was clear that THETA was in a powerful bearish development, particularly in April and Might. In June and July, the worth was in a position to type an accumulation sample, a rectangle backside, between $1.06 and $1.51. The mid-point of this vary lay at $1.29.
The vary sample’s highs and lows had been revered as resistance and assist since mid-Might. The mid-point of the vary has additionally acted as essential resistance on a number of events. Subsequently, a retest of the mid-range mark may supply a good shopping for alternative concentrating on $1.5-$1.55.
THETA- 4-Hour Chart
Supply: THETA/USDT on TradingView
On the 4-hour chart, the previous few days have seen a wild THETA pump from $1.15 to $1.45, earlier than a fast rejection at the newest buying and selling session at press time. Throughout this timeframe, THETA had a bullish outlook. It focused the vary highs at $1.5.
It have to be remembered {that a} good chunk of this transfer has already performed out. But, worthwhile trades can nonetheless be discovered for THETA over the subsequent few days. Your entire space from $1.35-$1.3 may be anticipated to behave as assist.
Subsequently, upon a pullback, a comparatively low-risk lengthy commerce may be entered, with a stop-loss under the $1.23-$1.25 zone.
Supply: THETA/USDT on TradingView
The shifting averages had been on the verge of forming a bullish crossover. The 21-SMA (orange) was simply beneath the 55-SMA (inexperienced) and climbing on the worth chart.
The RSI reached overbought territory as effectively when THETA reached resistance at $1.45-$1.5. This pressured a pullback, however the shopping for strain was not but halted.
The CMF was effectively above the +0.05 mark to focus on heavy capital circulation into the market. The OBV has additionally climbed previously week. It set greater lows alongside the worth throughout the previous three weeks as effectively. This discovering confirmed regular demand behind THETA’s rally from the $1 stage.
Conclusion
The quantity indicators confirmed a great quantity of shopping for was current behind the sturdy surge greater for THETA.
Momentum additionally continued to favor the bulls. The $1.35-$1.3 zone may be monitored to enter lengthy positions, concentrating on a transfer to $1.5.
If Bitcoin can break previous $24.5 and attain the $26k resistance, a transfer as excessive as $1.6 may additionally materialize.
