Bitcoin has been struggling to stay above $19,000. Will the market revisit the 52-W low soon?
Bitcoin fell to $18,000 last week and was just $400 away from hitting a new 52-week low. It has since come back to $19,000, however, this could just be a short pullback before the bears return again. The global markets have shown no signs of strength this week with the UK releasing reports of a recession. In this week’s technical analysis, we will analyze a few tokens from the Web3 space to find the ones showing weakness.
LINK/USDT
LINK broke out of the long-standing resistance at $7.5 earlier this week. However, it looks like the token will be rejected from the supply zone at $8.20. In the chart above, we can see that it has attempted to break the supply zone multiple times but failed.
LINK is once again approaching the supply zone — however, unless there is a high buying volume, the breakout will not be sustained. Traders should wait for a retest before taking long positions.
A 4-hourly close below $6 would mark a breakdown that will lead to a sharp drop to the next demand zone at $5.70.
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HIVE/USDT
In our previous analysis, we had ascertained that bears were in clear control. The downtrend continued after HIVE failed to break out of the resistance at $0.56.
We had also expected the price to test the support at $0.48. The price has not recovered much from the lows, and another test of the support could lead to a breakdown toward the 52-W low.
Traders should steer clear of HIVE if a close below $0.48 is seen on the 4-hour time frame.
DOT/USDT
DOT has been one of the worst performers this week as we expected a new 52-W low in our previous analysis. Therefore, traders should not take any positions until the supply zone at $6.61 is flipped.
At the time of writing, DOT has hit yet another 52-W low, and no signs of any strength or reversal can be seen. If the supply zone is flipped, expect a short rally to $7.21. However, traders should be cautious as the RSI has not risen to levels high enough to support a breakout.
If the current demand zone at $6 is broken, expect another low to be hit in the coming days!
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BAT/USDT
BAT is trading dangerously close to the last standing support at $0.29 near the 52-W low. After a strong move on Thursday, it formed a long wick hinting at the weakness of the bulls.
If the bulls can bring the buying volumes up, expect a retracement to the supply zone at $0.35. However, it seems like a risky bet. If a break below $0.29 is seen, a new 52-W low could be hit soon.
FLUX/USDT
After a good performance in the past couple of weeks, FLUX has performed strongly against the overall market sentiment. However, it has fallen by over 40% from the high that it hit this month. This is concerning as the downtrend does not seem to be slowing down after a crucial support level was broken on Sunday.
FLUX can now be seen aggressively approaching the last standing demand zone at $0.82. If this demand zone is broken, a sharp freefall can be expected.
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Summary
A quick recap of all the coins:
- LINK is approaching the breakout zone for a retest.
- HIVE is trading close to the support.
- DOT may hit another 52-W low.
- BAT is approaching crucial support.
- FLUX is about to test a very important support level.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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