Avalanche (AVAX) is holding above its all-time high so far, but there are still no signs that it will continue its uptrend.
The AVAX / BTC pair looks significantly more bearish than the USD pair as both price action and technical indicators offer a bearish outlook.
AVAX decreases after reaching ATH
AVAX has been down since September 23, when it hit an all-time high of $ 79.80.
Despite the decline, it is still above the $ 57 region, which is important as it was the previous all-time high in February and then acted as a resistance in August (red symbol). Then, when the level exploded, it confirmed that level as support (green symbol) on September 21, before reaching the all-time high mentioned above. So if price returns to this zone, a rebound is likely.
However, technical indicators do not align with price action.
The MACD line is falling and its histogram is crossed into the negative area. The RSI is also bearish, threatening to drop below 50. Previously, the RSI crossed above 50 on July 26th (blue symbol) ahead of the entire uptrend. Hence, the RSI’s reaction to the 50 level for the moment will be very helpful in determining the direction of the trend.
AVAX / USDT daily chart | Source: TradingView
The six-hour chart shows that AVAX has been trading in descending parallel channels since the all-time high mentioned above.
Such channels often contain corrective movements. This means that the downward move is a correction and the price will continue to move up once that correction is complete.
However, with the daily timeframe indicators falling, the trend cannot be considered bullish, at least until AVAX breaks across the channel.
AVAX / USDT 2-hour chart | Source: TradingView
AVAX / BTC
Trader @BobLoukas outlined the AVAX / BTC chart, suggesting the pair is showing signs of strength.
The source: Twitter
However, since the tweet, the token has dropped significantly.
Most importantly, it fell below the ₿0.00125 level. This level is important because it was the all-time high so far.
Failure to hold above this zone means that the uptrend will not be sustained and the gains may just be fake.
Additionally, like the USD pair, the MACD and RSI both provide bearish signals.
AVAX / BTC daily chart | Source: TradingView
Here you can see the AVAX prices.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto