Ignore the scale, as I simply dragged the respective price trends of Bitcoin and Avalanche into an empty field of the chart for a better visual representation.
For Bitcoin, this is the distribution pattern from February to mid-May this year. To the right of that, we see the price history of the AVAX token from September to today. The Bitcoin price trend here only serves to illustrate the consequence of a collapsing uptrend.
As can be clearly seen, the strength of the uptrend is steadily decreasing over time. This can be seen from the fact that the intervals between the new high and the previous high are getting smaller and smaller.
This can be explained by the fact that it is becoming increasingly difficult to find enough new aggressive buyers who can maintain the previous pace of the uptrend.
The upward movement is about to collapse. The latest warning signal of this is in a lower high, after an already noticeably sharp countermovement formed in the wake of the previous high. This movement is also known as the Dead Cat Bounce.
Should Avalanche see a relatively similar correction to the one seen in Bitcoin back in the day, a return to $35-40 would be the favored scenario here.
For Bitcoin, this is the distribution pattern from February to mid-May this year. To the right of that, we see the price history of the AVAX token from September to today. The Bitcoin price trend here only serves to illustrate the consequence of a collapsing uptrend.
As can be clearly seen, the strength of the uptrend is steadily decreasing over time. This can be seen from the fact that the intervals between the new high and the previous high are getting smaller and smaller.
This can be explained by the fact that it is becoming increasingly difficult to find enough new aggressive buyers who can maintain the previous pace of the uptrend.
The upward movement is about to collapse. The latest warning signal of this is in a lower high, after an already noticeably sharp countermovement formed in the wake of the previous high. This movement is also known as the Dead Cat Bounce.
Should Avalanche see a relatively similar correction to the one seen in Bitcoin back in the day, a return to $35-40 would be the favored scenario here.
