By Franklin Smith
Bitcoin conquered the $20.4K – $20.5K region, which restricted its upsides within the previous week. Weekend sessions saw heightened volatility and reduced volume. Prevailing actions had Bitcoin and AVAX exhibit bullish bias in the near term.
Remember, Avalanche will mimic Bitcoin’s tendencies. A BTC drop to $20.8K or $20.4K would likely trigger declines in AVAX. Avalanche’s price charts show that $19.5 and $20.5 would be crucial in the upcoming days.
Avalanche 4Hr Timeframe
The last two weeks saw AVAX’s price failing to break beyond the resistance at $20.5. Moreover, the $18 – $18.7 value area served as a reliable support zone. The price hovered around the hurdle during this publication.
Northward actions will likely meet another supply territory at $22. This level presented support in August, but sellers breached it. AVAX is yet to revisit the zone. The massive drop beneath this mark confirmed the chances of sellers overwhelming buyers upon a $22 revisit.
Meanwhile, the AO (Awesome Oscillator) remained beyond the zero line. And that indicated a bullish strength. Also, the CMF (Chaikin Money Flow) stayed beyond +0.05, showing money inflow into Avalanche’s market.
Avalanche 1Hr Timeframe
The 4hr charts didn’t signal pullback. Meantime, they depicted near-term bullish momentum. One-hour charts revealed similar tales. Though the RSI (Relative Strength Index) swayed back to 54, the indicator still highlighted a bullish stance for Avalanche. Moreover, the OBV (on-balance volume) has risen slowly within the previous few days.
Meanwhile, the $19.2 – $19.6 remained essential for Avalanche. Early September sessions had the region acting as resistance for near-term rallies. Meanwhile, the zone has seen clean breaks three times since then.
AVAX might witness a southward move to explore liquidity in this region. Meanwhile, such an action might present a lucrative ‘buy’ opportunity. That would have a stop-loss beneath $19. However, nothing implies a much pullback, and Avalanche might explode high to the $22 mark.
Final Thought
Bitcoin settled beyond the support of $20.8K and showed signals of further upsides, targeting $22.4K. Extended BTC upsides might see Avalanche following the upward party. Meanwhile, a drop to $19.5K might present a ‘buy’ opportunity for AVAX investors. Nevertheless, Avalanche experiences resistance at $20.5 and then $22.
Editorial credit: Vladimka production / shutterstock.com