After witnessing a nice recovery all through last week, Avax tumbles and turns weak again due to the latest drops. It has registered a 7% loss in the last 48 hours and will likely shed more in the coming days.

Last week, Avax took a little break from the dip and increased by more than 20% in 7 days to retest $37.5 earlier this week. It encountered resistance and resumed sell-off again after the short retest. 

Now that the bears are stepping back into the market, we need to look out for some key levels for a potential rebound. The closest level right now is $31.5, a minor support on the daily timeframe.

If this support cracks in the next few days, we can expect an extension to last month’s support – where it initiated recent recovery – before breaking lower. That support also serves as its lowest price level in two months.

To consider a bullish reversal, it must first reclaim this week’s high, followed by the current yearly high. 

Looking at the current market structure, Avax’s correctional phase is still valid on the daily chart. From December top, it is still down by almost 20%. We can expect a trend reversal once it finds a solid ground.

Avax’s Key Level To Watch

Source: Tradingview

While nearing close support of $31.5, the major support level to consider for a dip is $27.3, marked as a recent low. Losing this support could send the price to the low of $24.7 and perhaps $20 in the long run. 

The recently rejected $37.55 high is held as weekly resistance. If the price climbs above it, the next resistance level to keep in mind is $41.85. Above it lies the $45 resistance level.

Key Resistance Levels: $37.55, $41.85, $45

Key Support Levels: $31.5, $27.3, $24.7

Spot Price: $33.22
Trend: Bearish
Volatility: High

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: ivanbabydov/123RF // Image Effects by Colorcinch

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Filed under: Bitcoin - @ February 1, 2024 10:24 pm