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Higher timeframe market structure is strongly bearish A bullish order block from August could provide some reprieve for the bulls
Chiliz has been trading within a range since late September. It extended from $0.28 to $0.162. There was a big selloff last month and CHZ has lost 45% since Nov. 18. Earlier in December, a whale unloaded CHZ worth $102 million.
Read Chiliz’s [CHZ] Price forecast 2023-2024
The loss of the lows of the three-month series was also significant. It reinforced the fact that the bulls will have to do their job in the coming weeks. Bitcoin’s trend was also not in favor of buyers, and these risky market conditions meant that capital preservation was important.
Chiliz drops below range lows and $0.154 and further downtrend can be expected
On November 10, the Chiliz bulls took to heart as the token bounced from range lows to near range highs. Despite the intense panic in the market, CHZ posted a 73% gain in ten days from Nov. 9 to Nov. 18.
These gains shed their weight just as quickly. The range lows coincided with a bullish order block that formed on August 13. However, CHZ was only able to handle a small bounce from the lows in the range. After that, the order block was broken and flipped to a bearish breaker.
The $0.154 level had been important over the past month. At the end of November it served as support, but was converted to resistance in December. The momentum in the lower time frame was also bearish, meaning a drop to $0.13 could occur.
The $0.13-$0.141 area was a bullish order block from the beginning of August, merging with a longer-term horizontal level. Therefore, an increase in prices could occur in this region.
The funding rate is stepping into positive territory and the CHZ supply is in a downward trend
On Binance, the funding rate ticked back into positive territory. This suggested that futures traders were bullishly positioned, although this could be a reflection of the lower time frame sentiment. The longer term structure and trend was bearish.
Meanwhile, supply on exchanges has been falling since early November. This coincided with the local summit for Chiliz. The delivery stat showed that the CHZ token was withdrawn from the exchanges and moved to longer term storage. The measure of age consumed also experienced large peaks that coincided with local peaks in the price.
In summary, a move to the $0.13-$0.14 area could provide a scalping opportunity. But until $0.155 and $0.162 flip to support, buyers should remain cautious.
This post CHZ may drop another 10% after falling below this critical support level
was published first on https://ambcrypto.com/chz-can-slide-another-10-after-falling-below-this-critical-support-level/