Bitcoin broke the strong support at $22,500 after it fell by over 10% on Friday. Will the downtrend be over soon?
Bitcoin broke the strong support at $22,500 after it fell by over 10% on Friday. Traders should remain cautious until the support is reclaimed. High selling pressure has been observed across the markets in the past few days which led to numerous coins breaking crucial support levels. It is important to see which coins have shown relative strength and which ones are pointing towards a continuation of the downfall. In this week’s technical analysis, we will have a look to see which coins you should consider selling!
LINK/USDT
After a strong rally that helped LINK hit $9.5, strong selling pressure was seen which led to LINK plummeting to $6.6. In last week’s analysis, we had marked $7.5 as strong support - which broke on Friday. LINK also broke the supporting trendline that will now act as resistance.
At the moment, the bears are in control as they have taken out a crucial support level. If they are not able to reclaim the $7.5 price level, expect the price to test the demand zone at $6.3.
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HIVE/USDT
HIVE has broken the tight range that it was consolidating in. It is not a good sign for traders because further continuation of the uptrend does not look likely until HIVE is able to break back into the zone.
HIVE has performed relatively stronger in the past week as compared to the other coins as its fall was less significant. It indicates that the token may not trade under the supply zone for too long and break back into the zone this week.
If a close above $0.58 is seen in the 4-hourly time frame, expect HIVE to approach the next resistance at $0.65.
DOT/USDT
In last week’s analysis, we ascertained that the bull party was over. Since then, the price has fallen by over 30%. DOT also broke down from the crucial support level at $7.8 - it is now retesting it. If this retest is successful, expect the price to dip further to $6.55.
The bulls must reclaim the resistance at $7.8 to ensure that the downfall does not continue. If a close above $7.8 is seen on the 4-hourly time frame, expect the price to approach the resistance at $8.51 in the coming days!
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BAT/USDT
In last week’s analysis, we had anticipated the price to reverse from the demand zone at $0.37, and that is exactly what was saw. BAT formed a double bottom at the demand zone and has strongly outperformed the market. This is a great sign for traders, and it is also an indication that the price could start approaching the supply zone at $0.41.
BAT is the token to watch out for this week as it has formed a bullish double bottom and could test the resisting trendline soon!
FLUX/USDT
After FLUX briefly broke the important support at $0.9, it was able to reclaim the resistance shortly after. This is an indication that the selling volumes are low and the downfall in FLUX may be over. It was the strongest token out of all the coins on Thursday as it was trading 9% higher.
Traders can look for long positions as long as FLUX is trading over the resistance at $0.9. Expect a rapid move to $1.08 once FLUX is able to sustain over $0.9.
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Summary
A quick recap of all the coins:
- LINK needs to break the current resistance.
- HIVE is trying to break the zone that it was trading in the past week.
- A reversal must be seen in DOT soon as a further sell-off is possible.
- BAT is approaching crucial support.
- FLUX has finally broken out, and a strong rally could be seen if it is able to sustain above the resistance.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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