Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
Momentum on the 12 hour and daily time frame was bullish, but momentum in the lower time frame started to shift A pullback to an area of interest may be a buying opportunity but will be risky
Bitcoin has surged above $17,000 in recent days and was trading at $17.4,000 at the time of writing. It encountered intense resistance near the $17.6k and $17.8k. A drop for the king of crypto is likely to bring the rest of the market down as well.
Read the ApeCoin 2023-24 price prediction
ApeCoin was also trading within a higher time frame resistance zone. A pullback was likely for APE, but this could be followed by a move north. Will Bitcoin’s rejection, if it materialise, break this setup for ApeCoin? Or can traders wait for a bullish breakout in the coming days?
APE is posting a bearish divergence on the 4-hour chart as it moves into a resistance zone
Source: APE/USDT on TradingView
On the daily time frame, the red box marked a bearish order block that ApeCoin registered on November 5. This upward move to $5.25 was followed a few days later by a sharp drop to $2.82.
The intense reaction in this resistance zone marked it as a place where a similar reaction could occur again. A rejection remained likely, and only a daily session above $5.25 could reverse this bias.
How many APEs can you buy for $1?
On the four-hour chart, the RSI fell even as the price climbed higher – a bearish divergence. Hence, the bullish momentum slowed visibly even as the OBV climbed higher to indicate steady buying pressure.
A rejection at the order block could lead to a pull back to the bullish breaker in the $4.4 zone. The $4.26-$4.37 area also has an inefficiency on the chart, highlighted in white. A push below this inefficiency to $4.14 was an opportunity for a jump up.
The average coin age showed some accumulation, but profit taking was also a possibility
Source: Sentiment
Weighted sentiment was close to neutral and was strongly positive immediately after Christmas. At that point, no bullish price action ensued. Over the past week, the 30-day MVRV rallied steeply, breaking through late November highs. The conclusion was that holders can look to sell and take profits.
Combined with the price action, this added to the evidence behind the idea of a pullback.
This post APE’s momentum is slowing and a pullback seemed likely, but what may follow?
was published first on https://ambcrypto.com/apes-momentum-slows-down-and-a-pullback-looked-likely-but-what-can-follow/
