Bitcoin continues the sideways movement as it has been unable to break the resistance at $18,500.
After the deep sell-off, Bitcoin has been trading between $15,500 and $18,100. At the time of writing, it is too early to predict which side we could see the price breaking out. This is why traders should avoid taking any positions at the moment. In this week’s analysis, we will check which coins are trading relatively weaker than Bitcoin.
BTC/USDT
In our previous analysis, we had marked the support (at $18,500) as a very important level for Bitcoin to respect as a break of the support could lead to a new 52-week low. We can see in the chart above that Bitcoin has been trading at the same level as it was after the sell-off. This shows that the bulls have not returned yet, therefore, traders should wait before taking any positions.
If the price breaks the support, traders can expect the price to fall to $14,500.
It is crucial for the price to reclaim the $18,500 mark. However, at the time of writing, it doesn’t look like we will be seeing a breakout anytime soon.
Also Read: A Complete Guide to Death Cross and Golden Cross?
ETH/USDT
ETH was about to hit a new 52-week low on Tuesday, however, it has bounced back strongly from the support at $1,080 which is a good sign for the bulls.
It is still too early to take a long position in ETH as it can get rejected by the supply zone at $1,280. Therefore, traders should wait for the price to flip the resistance at $1,280.
If the resistance is reclaimed, expect the price to strongly approach the $1,400 level in the coming week!
Also Read: Breakout vs Fakeout (False Breakout) — Spot the Difference and Increase Accuracy
NEAR/USDT
In our previous analysis, we had advised traders to avoid taking positions in NEAR as it was showing signs of hitting a new 52-week low.
Since our previous analysis, NEAR has plunged by over 25%. Traders should wait for the coin to show strength by trading above $1.8 before taking any long positions. Expect the price to fall sharply if the demand zone at $1.4 is not sustained.
Also Read: What Is Fundamental Analysis in Cryptocurrency and Stocks?
ADA/USDT
In our previous analysis, we ascertained that the price was trading too close to the support at $0.34. It ended up plunging to a new low.
Traders should wait for the price to recover to $0.34. Traders can not expect any strong up move until this level is reclaimed. Expect the price to rally to $0.39, if the resistance is flipped.
FTM/USDT
FTM is another coin that has been trading relatively weaker this week. It hit a new low, therefore, traders should steer clear until the resistance at $0.21 is taken out.
We could see a strong reversal if the resistance is taken out, however, until then, traders should expect the price to continue trading sideways.
AVAX/USDT
In the chart above, we can see that AVAX recently fell sharply. Even though it recovered from the lows, it is still looking weak. Therefore, wait for the price to break back above $14.50. The price may surge to $17 if the resistance is flipped!
Also Read: What Is Crypto Options Trading?
Summary
A quick recap of all the coins:
- BTC is trading sideways.
- ETH needs to reclaim the $1,420 price level.
- Traders should avoid NEAR.
- ADA is trading close to the support.
- FTM could approach resistance soon.
- AVAX hit a new low this week.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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