Bitcoin was rejected by the resistance at $25,000 and fell back to $23,000 shortly after. What to expect next?
The bulls were not strong enough to break the resistance at $25,000. Will they be able to find enough strength to have another go at the resistance this week?
In this week’s analysis, we will stick to the 4-hour timeframe to keep the analysis precise!
BTC/USDT
In the chart above, we can clearly mark the resistance at $25,000 - the zone that rejected the price, and it dipped to $23,000 this week. We had expected this dip in last week’s analysis as the RSI showed an overbought reading.
Bitcoin is trading right below the supply zone (resistance) at $23,800 at the time of writing. If this resistance is reclaimed, we may see the price retest the resistance at $25,000 this week. Traders should maintain caution as a rejection from the resistance could lead to a sell-off.
Also Read: A Complete Guide to Death Cross and Golden Cross?
ETH/USDT
ETH outperformed BTC last week after it formed an inverse head and shoulder pattern. This is pointing towards a strong week ahead (DYOR), and we might see the price test the resistance at $1,710 after the formation of the pattern.
If this resistance is broken, the next supply zone will be around $1,790, as marked in the chart above.
Also Read: Breakout vs Fakeout (False Breakout)
NEAR/USDT
NEAR has fallen by over 20% after getting rejected by the resistance that we had marked at $2.8. A sharp fall can be seen which resulted in the price trading close to the support at $2.1.
If the support at $2.1 is broken, we may see the price fall back to the next support at $1.8. A bullish RSI divergence can be seen which is pointing towards a bounce from the support. If it happens, traders can expect the price to retest the resistance at $2.8.
Also Read: What Is Fundamental Analysis in Cryptocurrency and Stocks
ADA/USDT
ADA’s fall continued after it plunged by 15% last week. The price can now be seen trading right above the support at $0.35, which is why we might see the bulls return this week. Expect a strong reversal to $0.38, if the buying volumes start rising near the support level.
FTM/USDT
FTM is currently in a strong downtrend and a resisting trendline can also be seen. The price has reached a crucial support level at $0.42 which must be sustained to avoid a sharp sell-off.
AVAX/USDT
AVAX broke an important support level at $19 earlier this week, which shows that the bears are currently in control. Seems like we may see a reversal when the price approaches the support at $16 (DYOR).
Also Read: What Is Crypto Options Trading
Summary
A quick recap of all the coins:
- BTC is trading below the resistance.
- ETH has formed a bullish pattern.
- NEAR is near the support.
- ADA reversed from the support.
- FTM is in a strong downtrend.
- AVAX broke support last week.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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