Following the collapse of FTX, the crypto market plunged with Bitcoin falling by almost 15% on Wednesday.
A sharp sell-off was seen around Wednesday, which led to Bitcoin tumbling from $21,500 to $15,500. The collapse of FTX shook the investors’ confidence that became the main trigger for such a deep sell-off. In this week’s analysis, we will see which tokens have breached major points of support and which ones could be worth picking up soon!
BTC/USDT
In our previous analysis, we had marked the support (at $18,500) to be the last barrier between the price and the 52-week low (at $17,600). In the chart above, we can clearly see that the sell-off became sharper once the support at $20,000 was taken out, following which the price showed signs of slowing down directly at around $15,500.
The price finally reversed from $15,500 after the RSI showed an oversold reading, which resulted in the price climbing back to $17,400. However, this pullback was short-lived, and the price dropped back to $15,500. This shows that the bears are still very much in control and taking long positions can prove to be risky for traders.
The price is struggling to bounce from the demand zone at $15,500. It is making the demand zone weak and can cause a breakdown. Therefore, traders should avoid any long positions until the resistance at $18,500 is recaptured.
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ETH/USDT
ETH has recovered significantly from the lows after the sell-off, which is a great sign. However, until the resistance is captured, a further up-move seems unlikely.
ETH had shortly broken the important support at $1,280 on Wednesday. However, the bulls were quick to return to help push the price back above the support. ETH can also be seen forming a symmetrical triangle, therefore, traders can wait for a bullish breakout before taking long positions.
If the price is sustained over $1,280, traders can expect the price to start moving towards $1,420! This view will remain invalidated if ETH breaches the $1,280 mark once again.
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NEAR/USDT
In our previous analysis, we had established that a test of the 52-week low could be seen this week after a clear bearish trend on the chart. This week, the 52-week low was broken, and a new low was set at $1.8. NEAR is one of the weakest tokens at the moment, and it is not looking like a reversal will be seen anytime soon.
It would be advisable for traders to avoid taking any positions in NEAR until the resistance at $2.6 is reclaimed. It does not seem that the downtrend is over for the token - which is why a new 52-week low can be expected soon!
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ADA/USDT
After the sell-off on Wednesday, the price tested the important resistance at $0.39 and failed to break into the zone. ADA is looking weak at the moment, and, at the time of writing, it can also be seen trading very close to the last standing support. Traders should maintain caution as a new 52-week low could be hit if the support at $0.33 is broken!
A bullish bias can only be formed once the supply zone at $0.39 is recaptured. If it happens, traders can expect the price to rally towards $0.44.
FTM/USDT
FTM was one of the most affected tokens this week. However, it significantly recovered some of the losses on Thursday after it rallied by 25%. It has retested the breakdown zone, and it looks like the bearish trend is going to continue this week.
Traders should hold off until the resistance at $0.22 is broken.
AVAX/USDT
AVAX broke below the sideways zone that it was trading in on Thursday. At the time of writing, it was very close to breaking back into the zone. If it succeeds, expect the price to rally towards $19. However AVAX was not strong enough to flip the resistance at $16, therefore, it would be best for traders to avoid it.
Also Read: What Is Crypto Options Trading?
Summary
A quick recap of all the coins:
- BTC is pulling back to $17,600.
- ETH needs to reclaim the $1,420 price level.
- Traders should avoid NEAR.
- ADA is trading close to the resistance.
- FTM could break out soon.
- AVAX is about to break resistance,
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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