AVAX has been trading within an ascending channel since August 2021 finding support multiple times and keeping above its 100/200 day EMA's. As BTC’s ~45.6k support broke yesterday evening, many alts have faced a pullback. However, most are still trading near the bottom of their long-term channels and have found some level of support despite BTC’s drop to ~42.5k.
Here, we can see that AVAX could bounce from the bottom (~85) but I wouldn’t open a trade blindly as currently, we are in free fall. It is worth waiting for an initial green candle from the ascending support before buying.
I haven’t posted a BTC analysis yet but I think the ~42.5k support could break (unless there is a big buyer) in which case we can move to the ~41k level. If this happens quickly, the panic/liquidations could cause a quick wick toward 39k. Provided the long-term supports hold for the alts I have posted so far, this could be a fantastic opportunity to accumulate the alt you have been wanting for a low price.
What are your thoughts?
Please note I am not a financial advisor and this is not financial advice. All ideas are for educational purposes only :)
Please feel free to leave your comments, questions and thoughts below!