After forming a bullish inverse head and shoulder pattern, Bitcoin failed to rally. Let’s analyze web3 coins to see if there are any hidden bullish patterns!
After forming a bullish inverse head and shoulder pattern, Bitcoin failed to rally. In turn, it broke down by over 6% on Thursday, which led to Bitcoin breaking the $19,000 level. Is this an indication that the market has not bottomed out and could soon break the low of $17,600? Let’s have a look to see what the coins are indicating.
It is not looking like this was the bottom for Bitcoin, as it was not able to break back above the resistance at $22,500. This is why any fresh buys should be held off until we see a clear breakout above $22,500. Another sign of the bulls being weak was seen on Friday when Bitcoin recovered to $21,000 during the day. However, it closed at $19,000 after the buying volumes seemed to die down. If the low of $17,600 is broken, expect a rapid move to $16,800. Bitcoin could also be heading for a double bottom pattern. It could mark the bottom, but it is too early to anticipate such a pattern formed.
To keep the analysis as accurate as possible, we will be sticking to the logarithmic chart and the 4H time frame just like last week.
LINK was consolidating in a tight range on Monday, signaling that a significant move could be seen soon. Will LINK be able to break above $6?
Traders can expect a strong rally to $7.55 if the consolidation can result in the trendline being respected by the price. It could lead to a strong bounce from the trendline. A close above $6 must be seen as a confirmation of the bounce.
The bulls should return near the support at $0.44, which is also the Fibonacci 0.618 level. However, if this level is not sustained, expect HIVE to head right back to where the rally started.
At the time of writing, HIVE seems to be breaking the support at $0.44. This is the reason why traders should avoid any long positions. The bulls have lost the $0.618 level, which was crucial support. Therefore, HIVE could now be heading towards the next support at $0.318. Traders should wait for a close above $0.44 to expect the downtrend to end, which is not likely at the moment.
Traders should be cautious and must wait for a clear reversal near the support at $0.44 before executing any fresh buys.
This is why traders should avoid buying DOT until it is able to register a strong bounce from the support level. Once a bounce is seen, we can confirm the formation of a triple bottom pattern. Traders then can set targets at the supply zone at $8.50. It is important for traders to be patient and wait for a clear reversal before buying DOT as a breakdown could still be seen.
The price must stay above $0.35 for the uptrend to continue. Traders can expect a strong rally once BAT is able to break out from the supply zone at $0.44.
A strong rally could only be seen once the resistance at $0.44 is flipped. A close above $0.44 could make the bulls return. However, it is not likely as the price seems to be headed towards the support at $0.35.
If the support is broken, expect the price to test the next support level at $0.30.
FLUX rallied by over 30% last week, but the price shortly plunged back to the support level at $0.4. FLUX could soon hit a new all-time low as it is trading dangerously close to the last standing support. Traders should stay away from FLUX at the moment. It has formed a very bearish structure, and a reversal does not seem likely any time soon.
A quick recap of all the coins:
- LINK is consolidating in a tight range and can soon break out from a strong resistance.
- Traders should steer clear of HIVE for the time being as the retracement has not yet ended.
- DOT is trading right on the last standing support. A triple bottom pattern can be confirmed once a reversal is seen.
- A strong bullish rally could be seen soon in BAT. But only once the resistance is cleared.
- FLUX is likely to hit a new all-time low. This is why you should stay away from the coin until it can break out from the resistance at $0.62.