In this week’s analysis, we will stick to the 4-hour time frame to keep the analysis precise!
In our previous analysis, we had marked a triangle using two trendlines (red lines) that BTC was forming. We had mentioned that once the triangle is broken we could see a major move, the triangle was broken on Wednesday!
So what's next?
Since the triangle broke on the downside, it is looking like the bears are in control at the moment. It is very crucial for the bulls to strike back and push the price back into the triangle. If this does not happen, the price can head towards the next support (price floor) situated at $25,300
After Bitcoin surged to $30,000 this week, the resistance proved to be too strong for the bulls which resulted in the price plunging to $27,000. A breakdown can be seen in the symmetrical triangle which is pointing towards a further drop. At the time of writing, the price is currently retesting the trendline, if this retest is successful expect the price to approach the next support at $25,300.
ETH was forming a triangle similar to that seen in the charts of Bitcoin.
A false breakout occurred after the triangle broke on the upside earlier this week. This means that it made it look like the price was bullish, however ETH ended up pulling back from $2,020 to $1,831!
ETH is now on the brink of a breakdown from the triangle which is why traders should be cautious at the moment!
After a false breakout earlier this week, the price is on the verge of breaking down from the symmetrical triangle at $1,820. If this level is lost, expect the price to rapidly approach the next demand zone at $1,780! No hidden RSI divergences can be seen on the charts which is pointing towards a clear breakdown in price.
In our previous analysis, we had ascertained that it could be beneficial for traders to steer clear of NEAR as it was trading close to the support. This week, the support (price floor) was broken and a strong downfall can be seen in NEAR. Traders should continue to be cautious of NEAR this week too. (Not financial advice)
NEAR has broken the support at $1.8 after it was one of the worst performing giants this week. Strong downward momentum can be seen which is why it is looking like the price will soon test the support at $1.45.
The bears seemed to be in clear control in ADA last week as it was continuously falling . The bulls have failed to make a comeback which has led to the price collapsing to $0.34.
ADA has broken a crucial support at $0.38, this has led to the price continuing the strong downtrend. It is looking like the price might trade sideways now as it has reached a strong demand zone.
In our previous analysis, we had analyzed that it was concerning for the bulls as the price had not bounced from the support (price floor). The effect can be seen this week as the price has broken down from the support! Traders should maintain caution as it is not looking like the fall is over. (do your own research).
FTM failed to register a strong reversal last week from the support at $0.41, this paired with a bearish RSI divergence led to a sharp breakdown from the support. The price could now approach the support marked in the chart above at $0.31 soon!
The steep decline in the price of AVAX seems to have continued this week after the price has further dropped. A price floor can be seen at $14 however traders should be wary of AVAX until the downtrend ends.
The downtrend in AVAX seems to not have ended after the demand zone at $16.4 was taken out by the bears this week. A demand zone can be seen at $14 which could slow down the fall in the price. (do your own research)
BTC has broken down from the symmetrical triangle.
ETH is about to break support.
NEAR has broken down.
ADA broke support.
FTM is retesting the resistance.
AVAX was one of the worst performing coins this week.
Remember that this is all based on the subjective views of the writer and should not be construed as financial advice. As always, DYOR!
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.