Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Bitcoin’s gains in recent days have also seen Axie Infinity appreciate in value. The longer-term outlook has not shifted to bullish yet, despite the strong rise of $44.59. Resistance levels and supply areas remained for AXS to climb past the overhead.
Source: AXS/USDT on TradingView
Fibonacci retracement lines were plotted based on the movement of AXS from the swing high at $166 to the swing low at $44.59. On the lower time frames (LTF), the price has reached a higher low. In addition, the price appeared poised to close out a session above the bearish channel that AXS has been trading in since mid-December.
A pause outside channels generally sees a decent retracement of the movement within the channel. For AXS, the $56.31 represents the closest previous high, and a move above this level and a new test as support would suggest that the market structure has turned bullish in the near term.
Above $56.3, AXS has a horizontal resistance of $63.25 and bears could view the $64 (red box) area as a place to stack sell orders.
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Source: AXS/USDT on TradingView
The RSI on the 12-hour chart was at the neutral 50. Therefore, if the RSI were to retest the neutral 50 from above in the coming days, while AXS also retested $56.3 as a support, a short-term increase would to $63 probably could be.
The Awesome Oscillator climbed from bearish territory to the zero line to suggest that the bearish momentum from the recent sell-off is slowing. The OBV did not make any significant gains, although sales volume has increased in recent weeks. That could change if the OBV continues to climb like it did last week.
Chaikin cash flow has seen strong capital flow to the market in recent weeks.
Inference
Bitcoin has climbed above USD 40.6k, and the next levels to watch for are at USD 42k, USD 44.4k and USD 46.2k. It was not yet clear whether bulls are back at the wheel, or if bears have temporarily given up position as they bid their time as they wait for the next crossroads where they could force a wave of intense selling. The coming weeks have also started to look bullish for AXS, but by no means has a new bull run been fueled.
This post Axie Infinity closes outside a descending channel, this is where it can go
was published first on https://ambcrypto.com/axie-infinity-closes-outside-a-descending-channel-heres-where-it-might-head-next/
