AVAX: Bulls and bears tussle for $13

Disclaimer: The accusation presented does not represent financial, investment, trading, oregon different types of proposal and is solely the writer’s opinion.

• AVAX’s pullback has deed a cardinal confluence of 50% Fib and request zone.
• Open Interest and liquidation were skewed against the bulls. 

Avalanche’s [AVAX] property clip terms level of $13 presented a large buying accidental but with a caveat. The anemic Bitcoin [BTC] terms enactment could spoil the enactment for agelong positions. Notably, the pullback since mid-July has exposed the altcoin to >18% nonaccomplishment aft dropping from $15.97 to astir $13 arsenic of property time. 

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Put differently, short-sellers enjoyed implicit 15% nett during AVAX’s pullback. As expected, the retracement eased astatine the important confluence area, which could connection bulls re-entry options lone if BTC clears its contiguous resistance. 

Who volition budge successful the confluence area?

Price illustration indicators emphasized anemic buying unit and request for AVAX which could undermine bulls. For example, the RSI (Relative Strength Index) retreated from the overbought portion and was beneath a neutral level of 50. 

Similarly, the CMF (Chaikin Money Flow), which tracks superior inflows and outflows of AVAX, faced rejection astatine the zero people and was yet to transverse supra it decisively. Taken together, the indicators amusement muted request implicit the past fewer days. 

Nevertheless, terms enactment has deed a important confluence country of 50% Fib level and a bullish bid artifact of $12.85 – $13.38 (cyan). So, the country is an fantabulous level for going long, with contiguous targets astatine $14 (March lows) and $15 (June high). But the bulls indispensable ticker retired for a weakening BTC. 

A liquidity drawback beyond the confluence country towards $12 couldn’t beryllium overruled. But a candlestick league adjacent beneath the confluence country volition complicate matters for bulls. 

Open Interest rates declined

The presumption of AVAX’s futures marketplace further urged caution to bulls aiming astatine the confluence area. For example, the Open Interest (OI) rates, which way unfastened contracts and wide sentiment, person declined since mid-July. It emphasizes a driblet successful request and wide bearish sentiment successful the futures market. 

How overmuch are 1,10,100 AVAXs worthy today? 

The bearish sentiment was further confirmed by liquidation data, which indicated much agelong positions were discouraged successful the past 24 hours. 

So, AVAX bulls could lone person an borderline astatine the confluence country if BTC crosses the $29.5k absorption and advances further.