Topdown Analysis Of AVAXUSDT Using Support And Resistance Strategy And RSI Indicator As Confluence

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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

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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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 bullish.

I then move to the weekly timeframe to continue my analysis.

And on this timeframe, I could see more market candles than on the monthly timeframe, and this shows more market activities.

And on this timeframe also, I was able to spot a key level which is serving as a resistance level to the market price, and I expect the market to be rejected when it gets to this level.

Moving to the daily timeframe, I saw more market activities than on the 4hr timeframe which is expected.

I could see the buyers and sellers struggling to push price to their preferred direction.

And on this timeframe, I was able to spot another key level which is functioning as a resistance level to the price chart.

And I expect for the market to be rejected once it gets to this level, then I continued my analysis by going to the lower timeframe.

On the 4hr timeframe, there are so much noise in the market, as the bulls and bears struggle to show their presence.

On this timeframe, I was able to spot a key level, a level which is functioning as a support level to the price chart.

And as seen from the above screenshot, the market has made several touches on this level, and have respected this level.

It is expected for this level to be respected again whenever the market trades to it.

On the 2hr timeframe, we can see that the market has gotten to this support level, and I can see rejection candles

It is from this rejection candles that I intend to take my entry into the market but before then, I decided to make use of rsi indicator to search for confluence for my trade.

As it is on the 2hr timeframe that I take my entry into the market.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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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 decided to apply the rsi indicator to the monthly timeframe.

Applying it to the monthly timeframe, I noticed that the rsi has crossed above its 80% line, and this is an indication that the market is being overbought.

An overbought market is expected to be sold, and this implies that we expect to see a bearish trend reversal of the market.

On the daily timeframe, I noticed that the rsi has crossed below its 20% line.

And this is an indication that the market is being oversold, and an oversold market often signals a bullish trend reversal.

And this is in alliance with my analysis using support and resistance strategy, and then, I decided to move to the 2hr timeframe, as it is on this timeframe that I take my entry into the market.

Then moving to the 2hr timeframe, I also noticed that the rsi is in its 80% line, and the market is expected to experience a momentary bearish move.

I then placed my entry on the closest support level to the market price, and my take profit, as usual was placed on the closest resistance level.

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CONCLUSION

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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.