AVAX / TetherUSLong
AVAXUSD Bullish Bias
Current Market Analysis & Strategy
The price has broken down to a key support level, but there are mixed signals across timeframes. Here’s my interpretation:
Daily Chart Perspective:
The pair appears to have bounced off the support line, suggesting potential bullish rejection (i.e., buyers are defending this level). This could indicate a fake breakout if the price stabilizes or reverses upward.
4-Hour Chart Observation:
The breakdown looks unconvincing ("fake") due to weak momentum or lack of follow-through. This shorter timeframe contradicts the daily chart’s bullish bounce, creating ambiguity.
Confirmation Strategy
To avoid acting on false signals, we need price confirmation:
1. Wait for the candle to close above the support level on the 4-hour chart.
2. A confirmed close above support would strengthen the case for a fake breakout and signal potential upside. If the price closes below support, the bearish breakdown is likely valid, and further downside could follow.
What do you think of this, my friends??
The price has broken down to a key support level, but there are mixed signals across timeframes. Here’s my interpretation:
Daily Chart Perspective:
The pair appears to have bounced off the support line, suggesting potential bullish rejection (i.e., buyers are defending this level). This could indicate a fake breakout if the price stabilizes or reverses upward.
4-Hour Chart Observation:
The breakdown looks unconvincing ("fake") due to weak momentum or lack of follow-through. This shorter timeframe contradicts the daily chart’s bullish bounce, creating ambiguity.
Confirmation Strategy
To avoid acting on false signals, we need price confirmation:
1. Wait for the candle to close above the support level on the 4-hour chart.
2. A confirmed close above support would strengthen the case for a fake breakout and signal potential upside. If the price closes below support, the bearish breakdown is likely valid, and further downside could follow.
What do you think of this, my friends??
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.