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The $4 mark was a major support level that was lost last week. Filecoin Traded Just Above Another Psychological Level at $3 But Could Face More Bearish Pressure Soon

Core CPI data from the US Labor Department last week saw an upward move to $18k for Bitcoin, but those gains were quickly wiped out. Stock market indices such as the S&P 500 took losses last week and were likely to fall further this week.

Filecoin suffered intense selling pressure and registered huge losses on the price charts.

Read Filecoins [FIL] Price Forecast 2023-24

If Bitcoin can cross the $17,000 mark again, there is a chance of a small rally in the market. However, patience was important. Trading on December 19 would likely shed light on momentum for assets in the week ahead.

The $4 support was finally broken, bears euphoric

Source: FIL/USDT on TradingView

A series of Fibonacci retracement and extension levels (yellow) were plotted based on FIL’s move from $6.56 to $4 during the early November crash. From November 10 to December 16, Filecoin formed a range between $4.07 and $4.6.

On Dec. 14, FIL retested the $4.38 region as resistance and fell nearly 30% to hit $3. Over the past few days, volatility and trading volume have been low.

The Fibonacci extension levels presented $2.72 and $2.41 as bearish targets further south. Meanwhile, the 23.6% extension level at $3.39 almost retested as resistance. The Relative Strength Index (RSI) has been strongly bearish and has remained in oversold territory for the past few days.

A bearish divergence near a significantly lower time frame can provide traders with an opportunity to scalp. The Chaikin Money Flow (CMF) has been climbing weakly in recent days, but appears to have dipped below -0.05 again, indicating heavy selling pressure.

A move below USD 3 could send Filecoin down to USD 1.44, the 100% Fibonacci extension level, in the coming weeks based on the aforementioned USD 6.56 drop.

Open Interest is witnessing a sharp decline alongside strong bearish momentum for the price

Source: Coinalyse

Over the weekend, Open Interest saw a sharp decline, indicating the liquidation of long positions. Sentiment was bearish and the funding rate was also negative this weekend. Liquidation data from Coinalyze showed $4.98 million in long positions being liquidated as Filecoin fell from $4.15 to $3.02 on Dec. 16.

The technical charts showed a bearish bias as momentum and market structure favored the sellers. Futures market participants were also not hoping for a recovery for Filecoin any time soon. If FIL is able to recover $3.4, it could result in a change to shorter time frames. The long-term trend remained strong in favor of the sellers.

This post FIL bulls are rejected at $3.4, traders can expect more losses in the coming days

was published first on https://ambcrypto.com/fil-bulls-face-rejection-at-3-4-can-traders-expect-more-losses-in-coming-days/


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