Is this the perfect time for bottom fishing? Let’s see which Web 3.0 coins are showing signs of strength!
Bitcoin has been consolidating in a tight range between $28,500 and $32,000 for the past few weeks which could be an indication that a significantly volatile move may be seen soon. After an unexpected rally of 7.5% on Monday, Bitcoin broke out for a very short period from the range however the breakout was not sustained and it was back below the $30,000 mark after just a day, hence, investors must refrain from any fresh buys until the $32,000 mark is captured by the bulls. It is still too early to say which side Bitcoin could end up breaking out of after the breakout on Monday failed, however, traders should be cautious of high volatility in the coming weeks!
In the past week, several coins we analyzed tried breaking out of the tight ranges that they were trading in; however, they were rejected as the greater market was not able to support the bullish moves. This week we will analyze which tokens are relatively stronger and could see a strong rally once the Bitcoin bulls are able to reclaim the $31,000 mark. We will stick to the 4H chart just like last week to keep a closer eye on the price action from last week.
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Traders should not expect any powerful moves until a close on the 4H chart above $1,75 is seen. If GMT breaks the demand zone at $80, expect a strong bearish move towards $0.55.
The bulls have been unable to flip the resistance at $10.75 which could be concerning for investors as any bullish moves could fail until the resistance is flipped. It is crucial for DOT to flip the resistance as failing to do so could end with DOT breaking down from the support at $9.25.
A bullish bias can only be ascertained once a close above the $10.75 level is seen. A clear path to the next resistance at $14 can be seen, however, at the moment, the bulls seem to be too weak to break the resistance. Traders should steer clear of taking any positions until the resistance is cleared.
After the free-fall seen earlier this month, BTT has not recovered any of the losses as it was still trading near the price zone as it was after the fall. Another free fall could be witnessed in BTT if it breaks the support level thus investors should steer clear from BTT for the time being.
Investors should look to buy BTT only once it is able to close above the tight range and is able to sustain for at least 2-3 candles to narrow down the chances of a false breakdown.
Bears have continued holding down the bulls when it comes to BAT as it tried breaking out of the resistance at $0.44 on Tuesday. The bulls must overcome the resistance at $0.44 for BAT to progress towards the February 2022 low.
BAT has formed a bearish divergence on the 4H timeframe which could result in BAT breaking the support at $0.37 and heading towards the February 2021 low. At the moment any long positions should be avoided in BAT as it is not able to flip the resistance which could be a sign of weakness.
If a close above $0.44 is seen expect a strong impulsive move however if another rejection is seen it could end with BAT breaking the support at $0.37.
FLUX seems to have started its next leg in its downtrend after it gave up all the gains from the rally last week. FLUX had one last resistance that it failed to break which could be the reason for the sharp drop in price seen this week.
Investors must be prudent as FLUX is still trading in a zone and is being constantly rejected from each side which is resulting in FLUX trading in a sideways trend.
A strong bullish move can only be expected once FLUX is able to break out of the resistance at $0.8 through a strong closing on the 4H chart. It is looking like FLUX is relatively the strongest out of all the web 3.0 tokens!
In last week's analysis, we had asked investors to stay clear of FIL and it is looking like this may be the case once again. FIL tried breaking out of the supply zone, however, it failed right after showing major weakness in the price and it is looking like it is on the verge of breaking crucial support at $7.30. A break of this support will aggregate a sharp drop in price thus investors must be careful.
FIL is forming a bearish RSI divergence which is indicating that the support could be broken soon which may result in FIL heading for new lows soon.
A close below $8 in the 4H time frame may mark the start of the next leg. Therefore, investors should stay clear of FIL for the moment.
A quick recap of all the coins-
- GMT has broken the zone and the bears seem to be in full control after it plummeted in price by over 15% on Wednesday. Investors should abstain from taking any long positions until it is able to trade back above the support at $1.18
- A bullish move should only be expected once DOT is able to flip the resistance at $10.41. The resistance must be flipped before the bears come back and break down the support at $9.20.
- BTT has formed a very tight range which could result in a huge move once a breakout is seen. However, any long positions should be taken only once the resistance at $0.44 is taken out. It is looking like BTT will break down once again and may not recover like it did the last time it broke down.
- The bulls have not been able to recapture the $0.44 mark as the bears have continued holding a strong grip over BAT. It has not been able to reclaim the $0.44 mark even after multiple attempts which could be seen as a sign of weakness.
- FLUX is trading near a very crucial demand zone thus a strong bounce should be awaited before any long positions are taken. It is looking like the next bearish move could start if the support at $0.63 is broken.
- It is not looking like things will get any better for FIL holders as it has formed a bearish divergence. Investors should avoid investing in FIL at the moment as it is looking like it may break the support level and head for new lows.