Will Avalanche [AVAX] retest the $19.5 level before offering further gains
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
Bitcoin [BTC] has damaged above the $20.4k-$20.5k area which had rebuffed it per week or so in the past. Over the weekend, decreased quantity and heightened volatility may come up. Within the quick time period, each Bitcoin and Avalanche [AVAX] have a bullish bias.
A pullback to $20.8k and even $20.4k for BTC may see AVAX dip as effectively. The worth charts of AVAX highlighted how vital $19.5 and $20.5 may be within the days to come back.
AVAX- 4-Hour Chart
Supply: AVAX/USDT on TradingView
Prior to now two weeks, the worth has been unable to interrupt above the $20.5 resistance zone, the decrease crimson field. On the similar time, the $18-$18.7 area has acted as a stable assist zone. On the time of writing, the worth was again at resistance.
Additional to the north, one other provide zone lies at $22. In August, this zone supplied assist however was damaged. It has not but been visited but. The sturdy transfer beneath this stage indicated the chance that, if the worth revisits the $22 zone, promoting strain may overwhelm the patrons.
The Superior Oscillator (AO) was above the zero line to point out bullish momentum. The Chaikin Cash Circulation (CMF) was additionally above the +0.05 mark, to point out sizeable capital movement into the market.
AVAX- 1-Hour Chart
Supply: AVAX/USDT on TradingView
The four-hour charts didn’t sign a pullback. In truth, they confirmed short-term bullish power. So too did the 1-hour charts. Though the Relative Power Index (RSI) was again at 54, it nonetheless instructed a bullish bias for AVAX. The On-Steadiness Quantity (OBV) has additionally been rising slowly over the previous few days.
Of specific curiosity was the $19.2-$19.6 space marked in cyan. In early September, it served as a resistance to a short-term rally. Since then, this zone has been cleanly damaged on three events. Strikes with excessive impetus charged up and down previous this space with hardly a retest.
It was doable {that a} transfer southward may materialize to check liquidity on this space. Such a transfer may provide shopping for alternative, with a stop-loss beneath the $19 mark. But it surely have to be remembered {that a} pullback needn’t happen, and AVAX may blast greater towards the $22 area as effectively.
Conclusion
Bitcoin was capable of keep effectively above the $20.8k assist stage and confirmed indicators of additional good points towards the $22.4k area. If Bitcoin continues to climb, Avalanche has probability of following. A dip towards the $19.5 mark is usually a shopping for alternative as effectively. The $20.5 and $22 are the numerous resistance zones within the neighborhood of AVAX.
