Avalanche (AVAX) Bearish Short-Term
I will keep this one simple as I am just answering a question for one of my followers.
Avalanche is one of the Crypto-giants. We are looking at AVAXUSDT on the daily timeframe.
We have the same pattern of lower highs on this chart. A bearish trend because we also have lower lows.
Trading volume has been dropping since November 2023. These are the general signals that support a bearish bias.
Now, on the short-term, AVAXUSDT recently produced a price bounce. This bounce peaked before hitting MA200 (clearly shown on the chart). The fact that MA200 was not challenged as resistance means that the bulls are weak. The bulls being weak means that prices need to go lower before another attempt at going higher. Going lower can signal a lower low compared to 5-August because we have a lower high on the price bounce. A lower low can indicate a major drop coming next because the last low was 17 and a lower low would need to move to around 11-13 minimum.
It is still early of course but this is what the chart is saying now.
The lack of bullish strength is a major bearish signals. Since the bulls did not show up, then the bears will take full control of the chart. If the bulls were not able to move higher on this wave, then the market needs to look for liquidity and higher is not possible and thus it moves lower... Up and down, up and down. Down goes next.
Thank you for reading.
I hope this answers your question.
I hope you find the content entertaining.
Namaste.
Avalanche is one of the Crypto-giants. We are looking at AVAXUSDT on the daily timeframe.
We have the same pattern of lower highs on this chart. A bearish trend because we also have lower lows.
Trading volume has been dropping since November 2023. These are the general signals that support a bearish bias.
Now, on the short-term, AVAXUSDT recently produced a price bounce. This bounce peaked before hitting MA200 (clearly shown on the chart). The fact that MA200 was not challenged as resistance means that the bulls are weak. The bulls being weak means that prices need to go lower before another attempt at going higher. Going lower can signal a lower low compared to 5-August because we have a lower high on the price bounce. A lower low can indicate a major drop coming next because the last low was 17 and a lower low would need to move to around 11-13 minimum.
It is still early of course but this is what the chart is saying now.
The lack of bullish strength is a major bearish signals. Since the bulls did not show up, then the bears will take full control of the chart. If the bulls were not able to move higher on this wave, then the market needs to look for liquidity and higher is not possible and thus it moves lower... Up and down, up and down. Down goes next.
Thank you for reading.
I hope this answers your question.
I hope you find the content entertaining.
Namaste.
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