Bitcoin exhibited bearishness on its lower timeframes but changed the narrative yesterday after a massive upward move from $20.8K to levels beyond $23K. However, the surge wasn’t enough to shift the higher timeframes. The bellwether crypto should climb past the $24.1 – $24/5K value area to overturn the outlook to bullish.
Also, Avalanche encountered massive resistance on the price charts. AVAX is yet to flip its higher timeframes despite gains recorded within the previous month. The resistance zone at $28 remained crucial. More imminently, investors should watch the hurdle at $23.
Avalanche 1 Day Chart
AVAX exhibited a briefly hopeful outlook on the daily timeframes. The price has printed several higher lows since June. Also, it broke the resistance at $23 in two periods. The past few days saw Avalanche dropping below the resistance. Nevertheless, the higher lows pattern indicated that buyers were optimistic, bidding the altcoin higher and higher.
The FIB retracement zones plotted from the feeble rebound in May to the $13.71 June low had the 50% and 61.8% retracements at $25.84 and $28.71. Also, the latter exhibited a confluence with $28.79 – a long-term significant horizontal level.
Thus, even though Avalanche bulls pushed prices past $20 to levels above $23, the journey remains long for buyers to flip the long-term outlook to bullish. The value area at $28.7 – $32.7 (61.8% to 78.6% retracement) might ensure significant resistance in the coming weeks.
Reasoning
The RSI (Relative Strength Index) flipped the 50-neutral to support on the daily chart and was yet to trigger a bearish divergence. Avalanche might see some rough waters ahead, but the direction within the coming week or two seemed upside.
The DMI (Directional Movement Index) displayed a sturdy trend, with the ADX staying at 20.6 and +DI at 25.9. The OBV remained flat since mid-June. Also, the CMF (Chaikin Money Flow) is yet to spend substantial time beyond +0.05. The indicators highlighted the absence of massive buying momentum.
Final Thought
The momentum indicator Relative Strength Index displayed an ongoing uptrend. However, volume indicators indicated AVAX had not seen substantial buying pressure within the previous two months. The price action suggested a possible upside to $28. AVAX should overcome this hurdle and flip it to demand to ensure long-term bullish tendencies.
Editorial credit: Ira Lichi / Shutterstock.com
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