Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.
Bitcoin [BTC] paddled hard to stay above $19.8k the previous day. The bulls’ efforts have been rewarded in recent hours as BTC saw a small rise past the $21k level.
The resistance is next at $23.3k, and a higher Bitcoin could lead to short-term gains for the altcoin market. The Sandbox had some strength in recent hours as the price climbed above $0.89. Still, there was an area of heavy resistance for the SAND at $0.97.
SAND-1 hour chart
The Fibonacci retracement levels (light yellow) are plotted based on the move of SAND from $1.4 to $0.73 over the past two weeks. They showed that the 23.6% and 38.2% retracement levels were $0.89 and $0.98 respectively.
These levels are strong resistance levels. $0.89 has been reported at press time. However, the $0.97 (dotted white) represents a local high. It was a lower high on the chart in the recent downtrend. At the time of going to press, the market structure was bearish.
Still, the $0.89 was beaten and the $0.97 had yet to be beaten in order for the short-term bias to turn to bullish. On the downside, the $0.96 – $1 region has seen some solid resistance against the price over the past week. Therefore, rejection cannot be ruled out.
On the hourly timeframe, momentum indicators showed bullish momentum. The RSI was above the neutral 50 and has defended the neutral 50 line as support. This indicated that the buyers have the upper hand. Likewise, the Awesome Oscillator has also managed to stay above the zero line to show an upward momentum.
However, the A/D line was a concern for buyers. The indicator has gone lower and lower in recent days. Despite the rising price, there was no upward spike in A/D. The implication here was that the purchase volume was not significant. Therefore, the SAND move towards $0.97 could be rejected and one leg down in the coming days.
While lower time frame indicators indicated bullish momentum, there has been a lack of demand for SAND in recent days. Unless demand arrived, a true uptrend may not materialize.
The $1 level is also a psychological resistance. Patience was required, and if SAND managed to flip $1 to support, then upward momentum can likely be sustained. Otherwise, a reversal to $0.8-$0.75 could be in the offing.
This post SAND Must Beat This Resistance Zone To Turn Bias To Bullish
was published first on https://ambcrypto.com/sand-has-to-beat-this-resistance-zone-to-flip-bias-to-bullish/