AVAX: Bulls and bears tussle for $13

Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion.

• AVAX’s pullback has hit a key confluence of fifty% Fib and demand zone.
• Open Curiosity and liquidation had been skewed towards the bulls. 

Avalanche’s [AVAX] press time value degree of $13 introduced an amazing shopping for alternative however with a caveat. The weak Bitcoin [BTC] value motion might spoil the social gathering for lengthy positions. Notably, the pullback since mid-July has uncovered the altcoin to >18% loss after dropping from $15.97 to round $13 as of press time. 

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Put otherwise, short-sellers loved over 15% revenue throughout AVAX’s pullback. As anticipated, the retracement eased on the essential confluence space, which might supply bulls re-entry choices provided that BTC clears its instant resistance. 

Who will budge within the confluence space?

Supply: AVAX/USDT on TradingView

Value chart indicators emphasised weak shopping for strain and demand for AVAX which might undermine bulls. For instance, the RSI (Relative Power Index) retreated from the overbought zone and was beneath a impartial degree of fifty. 

Equally, the CMF (Chaikin Cash Circulate), which tracks capital inflows and outflows of AVAX, confronted rejection on the zero mark and was but to cross above it decisively. Taken collectively, the symptoms present muted demand over the previous few days. 

Nonetheless, value motion has hit an important confluence space of fifty% Fib degree and a bullish order block of $12.85 – $13.38 (cyan). So, the realm is a superb degree for going lengthy, with instant targets at $14 (March lows) and $15 (June excessive). However the bulls should be careful for a weakening BTC. 

A liquidity seize past the confluence space in the direction of $12 couldn’t be overruled. However a candlestick session shut beneath the confluence space will complicate issues for bulls. 

Open Rates of interest declined

Supply: Coinglass

The standing of AVAX’s futures market additional urged warning to bulls aiming on the confluence space. For instance, the Open Curiosity (OI) charges, which observe open contracts and general sentiment, have declined since mid-July. It emphasizes a drop in demand and general bearish sentiment within the futures market. 

How a lot are 1,10,100 AVAXs price at this time? 

The bearish sentiment was additional confirmed by liquidation data, which indicated extra lengthy positions had been discouraged prior to now 24 hours. 

So, AVAX bulls might solely have an edge on the confluence space if BTC crosses the $29.5k resistance and advances additional.