Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The daily market structure turned bearish after heavy losses in the past 3 days Volume indicator showed bulls had a chance of a rally if BTC cooperates
Bitcoin Dominance stood at 47.17% at the time of writing, with the same increase since April 18. This is a sign that the altcoin market took a bigger hit than Bitcoin during the sell-off. Avalanche was one of the tokens that saw much bigger losses than BTC.
Realistic or not, here is AVAX’s market cap in terms of BTC
Avalanche fell by 22.45% in the space of three days, while Bitcoin fell in value by just 11%. AVAX’s market structure and volume profile suggested that further losses were likely. And yet there was one indicator that disagreed.
Rejection of the daily bearish order block caused AVAX to fall under firm support
Source: AVAX/USDT on TradingView
The Visible Range Volume Profile showed that the Value Area High and Value Area Low were $29 and $15.13, respectively. The Point of Control (red) was $17.34 and AVAX was trading at $17.02 at the time of writing.
The fact that the bulls could not defend the POC caused some concern. A daily session just below it was disheartening and showed that further losses were possible. The market structure was also bearish after beating the higher low of the previous uptrend during the down move. The RSI also highlighted bearish momentum after falling below the neutral 50 mark.
However, the OBV remained in an upward trend. The recent losses only put a small dent in the OBV’s progress over the past few months, showing that buyers had the upper hand on the higher time frames.
How much are 1, 10 or 100 AVAX worth today
To the south, a bullish order block was identified in the USD 14 zone, also holding a support level at USD 16.14. AVAX bulls could reverse the downward trajectory at these levels.
The funding rate slipped into bearish territory and speculators straddled the fences
Source: Coinglass
Finally, Coinglass data showed that the funding rate was bullish up to April 19, but started to decline in recent days.
Binance and Gate.io underscored negative funding over the past few hours, revealing a shift in sentiment.
Source: Coinalyse
Coinalyze data also pointed to bearish sentiment. Both Open Interest and AVAX prices fell. This was a sign of bearish momentum for the price and appeared to discourage bulls in the futures market.
In fact, they are not yet actively shorting the token, which could accelerate losses.
This post AVAX has this silver lining to look forward to despite huge losses
was published first on https://ambcrypto.com/avax-has-this-silver-lining-to-look-forward-to-despite-massive-losses/
