Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
A support level with a $18 liquidity pocket meant that Avalanche maintained strong support despite recent selling. A Bitcoin crash below $22.3k could make buying Avalanche risky.
Bitcoin [BTC] fell below $23k in the past few hours. At the time of writing, much of the crypto market was in the red today. Avalanche [AVAX] also recorded losses during the day’s trading. The asset fell from $20.24 to $19.73, a 2.5% loss.
Realistic or not, here is AVAX’s market cap in terms of BTC
Higher time frame analysis showed that Avalanche could be set for a dip towards the $18.7 and the $17.8 levels. Bullish traders can wait for a bounce and a bullish market structure in a shorter amount of time before looking to access long positions.
Bulls with a higher time frame can wait for AVAX to fall into an area of interest
Source: AVAX/USDT on TradingView
Avalanche’s market structure remained bullish on the one day timeframe. In the south, below $19, it has a higher significance level of $18.6. The $17.5-$18.6 zone represented a pocket of liquidity.
In mid-January, many candles in this zone were rejected on shorter terms. This meant that sellers were dominant in this zone at the time. When the $18.6 level was crossed at the end of January 2023, it signaled bullish dominance. Hence, a return to this pocket of liquidity is likely to produce strong buyers.
Further south, AVAX has support levels at $16.8 and $15.77. A daily session close to $15.77 will flip the structure to bearish. Until then, buyers can bid at key support levels, although this can be risky.
The RSI dropped towards a neutral 50 indicating that bullish momentum was fading. In contrast, the OBV rose to show buying pressure.
Open Interest is falling, but funding ratio remains positive
Source: Coinglass
How much are 1, 10, 100 AVAX worth today?
Open Interest rose on January 28. It has since made a series of lows. During the same period, AVAX reached $21.6 and pushed higher to reach $22.75. By then, the OI had already weakened, not to mention the bearish divergence the RSI was making with the price.
The funding rate remained positive, suggesting that market participants are bullishly positioned and have not yet turned sharply. In general, buyers who want to hold AVAX for a few weeks before selling can wait for a bullish reaction in the market before buying, and cut their losses below $15.7.
This post AVAX remains bullish, but long-term investors will have to wait for this level
was published first on https://ambcrypto.com/avax-remains-bullish-but-long-term-investors-should-wait-for-this-level/
