Chiliz (CHZ) has been retracing since creating a short-term bearish pattern, but the long-term trend remains bullish. Avalanche (AVAX) has yet to show any bullish reversal signs.
Japan’s domestic cryptocurrency exchange, DMM Bitcoin, has announced it will start handling new transactions of CHZ and AVAX. In the case of CHZ, this is the first time that a Japanese cryptocurrency exchange is listing the token.
The project has other positive news coming in, with OKX announcing that it will list three more fan tokens based on several rounds of voting.
CHZ creates double top
Chiliz has experienced a 12% decrease over the past 24 hours, increasing the risk of a steeper correction. The decrease occurred after the price created a double top, which is considered a bearish reversal pattern.
The double top was also combined with bearish divergence (green line) in the RSI, increasing the possibility of a breakdown.
The wave count is also in alignment with this movement. After a completed five-wave upward movement that began in June, it seems that CHZ has just completed the B wave of an A-B-C corrective structure (black).
If so, the C wave is expected to be completed near the 0.618 Fib retracement support level at $0.152, giving waves A:C a 1:1 ratio.
Despite the short-term double top pattern, it is possible that CHZ has begun a long-term bullish reversal. Therefore, it is not expected to fall below its yearly lows.
AVAX is very close to its yearly lows of $13.71. The price has been falling since Aug. 13 and broke down from an ascending support line on Aug. 20.
Currently, it is approaching its yearly low support area at $15. If it breaks down, AVAX could fall all the way down to the next closest Fib support at $9.
The daily RSI has already broken down from its bullish divergence trend line, so it is possible that the price will do the same.
For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here
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