Hello great minds,
I feel honored to approach you all today to discuss on a very important issue in the cryptospace.
I believe you are all doing perfectly fine and are enjoying your activities in the community as you actively promote steemit across various social media platform.
Today I will be sharing my analysis on the token of avalanche network which is avax, and I will be sharing my analysis on avax against usdt.
Please stay tuned as I share my analysis
ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY
Technical analysis are best started from the higher timeframe and then to the lower timeframe.
Some analyst prefer starting their analysis from the daily timeframe, down to the fewer minutes, but I begin mine from the monthly timeframe.
The monthly timeframe helps me to compress market activities and display them on a screen.
And the monthly timeframe also helps in eliminating unnecessary noise from the market.
Beginning with the monthly timeframe of the pair AVAXUSDT, we can see the formation of bullish and bearish candles.
We can also see that there are few candles on this timeframe and this is because each candlestick were formed within the space of 1month.
Also from the above screenshot, we can notice that it is easier for the market trend to be identified, and from the above screenshot we see that the most recent leg of the market is bearish.
I then moved to the weekly timeframe to continue my analysis, and on this timeframe I could see the market more clearly, I could see the formation of more candles as each candle is being formed within the trading period of 7days.
And looking at the market carefully, I was able to identify a key level and this level is functioning as a resistance level to the price chart and the market is expected to be rejected whenever it trades towards this level.
And from the screenshot above, we can see the validity of this level, as there is always a noticeable reaction on the market whenever it trades towards this level.
I then moved to the daily timeframe to continue my analysis and on this timeframe, I could see the formation of several bullish and bearish candles which indicates the presence of buyers and sellers in the market.
And looking carefully, I was able to identify another key level and this level is functioning as a support level to the price chart, and the market is expected to be rejected whenever it trades towards this level.
And from the above screenshot, we can see that this level is a valid level as it has been tested and respected severally by the price chart.
And getting to the 4hr timeframe, I could see lots of noise in the market as the buyers and sellers are struggling to drive the market to their preferred direction.
And looking carefully, I could see that the bears are currently in control of the market, but personally I believe this is a minor retracement in the market, as I still have a bullish bias in the market.
And getting to the 2hr timeframe with my bullish bias, I could see the market more clearly, and I could see the strength of the sellers in the market as the market kept forming lower lows and lower highs.
And then I proceeded to identify a bullish orderblock which I intend to take my bullish entry from and a take profit position.
And before then, I decided to search for trading confluence using the relative strength index indicator.
CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR
The rsi Indicator is a very important trading tool in the cryptomarket.
The rsi indicator is used to spot oversold and overbought market regions.
And when a market is spotted to be oversold, it is a signal that the market is about to experience a bullish move.
And when a market is spotted to be overbought, it is a signal that the market is about to experience a bearish move.
I then applied the rsi to the monthly timeframe, and on this timeframe, i can see that the market is being oversold, and an oversold market can be detected when the rsi crosses below its 20%% line.
An oversold market is one that signals a bullish trend reversal of the market, that is, a change in market strength from the sellers to the buyers.
I then moved to the daily timeframe for more confluence to my trade, and on this timeframe, I could see that the market is being oversold, and an oversold market signals a bullish trend reversal.
It is a market condition that shows the weakness of the sellers and the strength of the buyers in the market.
And moving to the 2hr timeframe with my bullish bias, I decided to place my entry on the closest support level to the price chart and my take profit was placed on the closest resistance level to the price chart.
CONCLUSION
Avalanche is a very nice crypto project in the cryptospace and its native token is what we know to be avax.
And as seen above, I have shared my analysis on AVAXUSDT, and I intend for my post to be taken as an educational content and not a financial advise.