Avax’s price increased by 2% overnight after failing to sustain negative actions below the previous low. It held as support and formed a double-bottom pattern. A potential bullish reversal is in play.
Following the last 24 hours’ gains across the crypto space, Avax appeared to have suspended selling pressure and now gearing up for positive action. The monthly bearish party seems to be getting over with the current bullish setup.
The $13.7 level, which stopped bearish actions last week, is now serving as the base support level following a notable push over the past hours. The bears will have to conquer this level if they manage to step back.
No doubt that the bulls are showing a strong commitment to regaining control after last week’s recovery. They repeated reactions today with a huge volume. We can expect more greens to surface in the coming days if they keep reiterating actions.
However, the major indicator that triggers buying is the current increase in Bitcoin’s price as it changes levels with a higher high and higher low formation on its lower timeframe. The setup is not valid yet.
Another thing to consider for Avax’s bullish signal is the new double-bottom pattern forming on the 4-hour chart. A weekly close above the $15 resistance level should confirm a change in trend, which could close the month on a bullish note.
Avax’s Key Level To Watch
As the bulls target more gains, a push above the mentioned weekly resistance should propel buying toward the $15.5 and $16.4 levels in the coming week. The $17.7 level will be the next resistance to pay attention to if buying continues.
For a bearish continuation, Avax must first crack the $14 level before considering the next support levels at $13 and $12.3 respectively.
Key Resistance Levels: $15.5, $16.4, $17.7
Key Support Levels: $14, $13, $12.3
- Spot Price: $14.45
- Trend: Bearish
- Volatility: Low
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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Source: https://nulltx.com/avalanche-price-analysis-prediction-june-5th-avax-forms-double-bottom-pattern-above-two-week-support-potential-bullish/