A new weekly candle, so far not looking good for the bulls. Where does the market go from here?
This week's price action continues to print lower highs and lower lows. In this week's technical analysis, we will study price action to analyze the movements of BTC, ETH, NEAR, SOL, LUNA and FTM in the 4-hour time frame.
BTC/USDT
Using the logarithmic chart and using the 4-hour time frame.
Zooming out on the 4-hour time frame to look at the bigger picture. Here we can see Bitcoin (BTC) is currently testing its last major level of support above its previous all-time high. Since the beginning of 2021, BTC has had an incredible run. Zooming out, price action continues to respect its range shown. However, the bulls need to show up — will they?
Taking a closer look at the last time price action was at this level. We can see this was a volatile area for a couple of days before BTC found its direction. A close above major resistance at $32,550 is a good sign the bulls will step in short-term. If BTC is rejected by this resistance zone it's going to get ugly.
A 4-hour close above $32,550 is ideal for the bulls. However, if we lose the recent low or are rejected by $32,500 price will continue to sell off.
ETH/USDT
Sticking to the logarithmic chart to keep things nice and tight.
Looking at the 4-hour time frame, we can see Ethereum (ETH) is also respecting a long-term range. Price action is now testing major and range support, will it hold?
Taking a step back we can see ETH has multiple levels of support before it revisits its all-time high for support. At the time of this writing, ETH is looking to bounce off the dynamic support shown. If ETH bulls can close above $2,500 expect the bulls to step in. This would leave a setup for a push towards $2,900.
A 4-hour close above $2,500 puts the bulls in position for a higher high. However, if we see a rejection from this level and expect a continuation of lower lows.
NEAR/USDT
Looking at the 4-hour time frame, we can see NEAR Protocol (NEAR) has been creating lower highs and lows. Does this end soon?
Zooming out we can see NEAR has been respecting a bullish channel since its inception. However, at the time of this writing, NEAR has recently formed a lower high. NEAR is known for having parabolic runs, once direction is confirmed.
A 4-hour close above $11.35 and expect the bulls to step in. However, if we see a failed attempt at a higher high expect the sell off to continue.
SOL/USDT
Sticking with the 4-hour, we can say Solana (SOL) has lost major support.
At the time of this writing, SOL is testing major and channel support. A loss of this level and expect a panic sell into deeper waters. A bounce off this level flips May 2021 high as support. This would set up SOL for a push towards $75.
A 4-hour close above $70 is a good start for the bulls. However, if we see a rejection from $70-$75 expect a continuation of lower lows.
LUNA/USDT
Things are not looking so hot for Terra (LUNA), let's take a look.
Zooming out we can see LUNA has broken out of its bullish channel. The crash is further exacerbated by the depeg of the UST stablecoin, causing LUNA to dip further amidst a bear market. At the time of this writing, LUNA is looking to confirm support at $35. LUNA desperately needs a bounce off this level. If LUNA does not confirm support at this level expect a continuation towards the $20 zone. Short-term the bears are in full control.
A 4-hour close above $35 gives the bulls a chance. However, a rejection from this level and expect the sell-off to continue.
AVAX/USDT
Avalanche (AVAX) is similar to LUNA, let's take a closer look.
Zooming out we can see AVAX has lost major support. At the time of this writing, AVAX is testing its last major support level before revisiting the channel support at $35. Looking left we can see this level is a battleground for the bulls and bears. Expect the price to sit at this level until we see a strong confirmation. Short-term the bears are in full control.
A 4-hour close above $55 and the bulls are back in this. However, a rejection from the $50 zone and expect a continuation of lower lows.
FTM/USDT
Last but not least, Fantom (FTM). Bears remain in control, does this end soon?
Shifting toward the most recent price action we can see the price is now testing resistance for support. This was the level FTM broke before it had a parabolic run. The bulls need to step in or expect a continuation of lower lows.
A 4-hour close above $0.70 gives the bulls some confidence. However, a rejection from this level and expect it to ugly.
Summary of All the Chart To Keep It Simple
If you are one of those who skipped to the bottom to save some time, here is a summary of the above:
- BTC testing range support.
- ETH holding up better than most.
- NEAR is testing major support.
- SOL is testing channel support.
- LUNA needs help.
- FTM sitting at a critical level.
Things aren't looking so good for the bulls. They need to step in this week or expect the market to continue printing lower lows.
Remember that this is all based on the subjective views of the writer. As always, do your own research.
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