Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
For the past few days, Bitcoin has faced rejections near the $45.2k and has since fallen steadily to trade at $39.1k at the time of writing. Gala had also risen towards $0.275, but was rejected at that level. Interestingly enough, this was the same level that marked one of the lower highs for Gala during the downtrend in the second and third weeks of February. Was there more downside in store?
On the charts, GALA saw it climb from the $0.192 lows to $0.26 last week before retreating to the $0.224 area in search of demand. GALA appeared to have continued its bullish market structure in early March and moved past $0.27, but the $0.275 highs rejected the bulls’ advance.
A series of Fibonacci retracement levels (yellow) was drawn based on the shift from $0.192 to $0.276. The $0.224 and $0.21 levels turned out to be the 61.8% and 78.6% retracement levels of this move.
So while we can expect some demand and temporary relief in these areas, a further downward trend would be likely. The $0.224 level, which had functioned as demand a few days ago, has been flipped to supply in recent hours.
The RSI has failed to break above a short term bearish trendline (white) and stood at 39.9 indicating bearish momentum was once again strong.
The CVD showed steady sales volume in recent days, meaning the downtrend had legs to stand on. Another downside could be seen for GALA especially if Bitcoin fails to hold the $38k-$39k area.
The charts showed that GALA would have a further downward trend as USD 0.24 converted to resistance. In the south, demand could reach $0.21 and $0.192. The short term market structure flipped to bearish as $0.256 flipped to resistance hence the short term outlook remained bearish.
This post Gala investors anticipating profit should know that this level is critical to them
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