In this weekly article, we will try to offer a clear vision of the key levels of the analyzed cryptocurrencies, according to a criterion of technical analysis and volumetric analysis, to offer concrete help to all those who work in the crypto world. This week we’ll analyze BTC, AVAX AND BNB.
Analysis BTC/USD
The global view remains uncertain as, since the collapse of 4th December, prices still remain below the zone we indicated last week in the 52k-50k area. Similarly, there are a lot of orders between 42k and 46k. The key area is located in the 40k area and then 30k. To witness strong bearish accelerations: a quick return to 42k will not be a positive sign. We could see some easing only above 54k and only above 59k-60k we would have a noteworthy bullish signal. My strategy is to wait for clear signals from the market before buying. The first signal will be at a Price level higher than 50k for some days.
The scenario could change this week or confirm new declines, we will see what the Fed will communicate, given that the Smart Money remains wait-and-see for now. If we do not see a very strong rebound soon, the scenario that sees new bearish sinks is the most likely one.
Analysis AVAX/USDT
Avalanche is an open-source blockchain protocol that hosts interoperable blockchains, decentralized applications, and financial primitives or applications from the DeFi sector (decentralized finance). Ava Labs reported a few days ago that it joined the startup acceleration program empowered by Mastercard for the development of use cases with blockchain technology.
Avax has climbed a steep decline like most cryptos, after 26th November. At hitting a new all-time high in the 135 area, we saw price rapidly approaching a relevant volumetric support zone.
When the price makes a vertical explosion and quickly returns to previous volumetric levels, it is very important to see an equally strong reaction when it makes this type of approach, to avoid seeing a trend reversal.
Avax has come very close to level 74 but seems to want to reach close to it. A recovery of area 95 would be a very positive signal, but only above area 110, the bullish signal would be very strong, especially if we were to witness a V-reversal. In that case, the target is to touch area 128 and, in case of a strong break, to have the possibility to see a further theoretical extension in the 180 area, a rise of more than 40 percent, similar to the previous one.
In the event that price loses the area 74, support 57.57 / 48.73 and especially the area 31.06 are the supports on which it is reasonable to expect a powerful pullback and, of course, look for new long entries.
The current price structure seems to want to open up to new hikes. It is therefore good to monitor Avax because it could carry out a strong bullish explosion.
Analysis BNB/USDT
BNB is the native currency of the Binance Chain and powers the Binance ecosystem launched through an Initial Coin Offering (ICO) on June 26, 2017, 11 days before the official start of trading on the Binance exchange.
In 2021, this cryptocurrency saw very strong growth, reaching an all-time high in the 682 area. After the correction in May, prices showed us two important areas, where the presence of climatic volumes led to the formation of two accumulation zones.
The first in area 331.7 / 256.9 which saw them fall in May stop. The second is in the 419.4 / 472.4 area, the basis for the rise that began in October and which sees the price fluctuate in recent weeks close to the previous all-time highs.
The wedge formation indicates the possibility of an important bullish break. BNB remains very solid compared to other cryptocurrencies, but we are at a crucial time. If prices manage to show strength above area 595, there will be a chance to see a test of 640. From this area, if prices show verticality, we could see not only a touch of the previous all-time highs, but also an attack in the 700-836 area. This would mean a further 40 percent increase, after 80 percent of the last three months.
On the contrary, the loss of 520-500 would lead to a new test of the support area 472.4 / 419.4, an excellent area for making new purchases. In the event of a general crash, the touch of 331.7 / 256.9 would be perfect.
Conclusion
The cryptocurrencies analyzed are holding the supports well, sentiment remains calm and the accumulation phase has not seen major shocks. However, taking into account that liquidity is still very low, it is good to be patient and enter only if the market shows excellent bullish strength, preferably similar to that of December 2020.
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