AVAXUSDT. On the Daily timeframe, selling takes precedence
On the daily timeframe, we see a sideways movement with the upper boundary at 49.96. The price has been above the upper boundary for the last 20 days, but yesterday it returned to it and stopped at the 50% level of the last buyer's impulse on the weekly timeframe. This is clearly visible on the hourly timeframe:
At the top, a seller's zone has formed with the upper boundary at 48.3 (red background), and at the bottom, a buyer's zone with the upper boundary at 45.18 (blue background). I anticipate price interaction with the seller's zone of interest. If the seller defends the range of 48-50, we can consider the possibility of sales, and the bearish vector 5-6 will become relevant with a target at 32.3. However, on the way to this target, sellers may be hindered by the buyer's zone, with which there was just interaction and a bullish reaction began, as clearly seen on the hourly timeframe.
On the hourly timeframe, the price is below the lower boundary of the sideways movement at the level of 48.3. The bearish vector 11-12 has already played out, and we can expect the launch of the bullish vector 12-13 with an ambitious target at the level of 61.95 (ambitious, because the buyer will have to overcome the seller's zone on the daily timeframe). To launch the bullish vector, the buyer needs to raise the price above the range of 48-50 and protect it.
For a more detailed explanation of how to read charts and consider different timeframes when looking for trades, you can refer to the article
On the hourly timeframe, the price is below the lower boundary of the sideways movement at the level of 48.3. The bearish vector 11-12 has already played out, and we can expect the launch of the bullish vector 12-13 with an ambitious target at the level of 61.95 (ambitious, because the buyer will have to overcome the seller's zone on the daily timeframe). To launch the bullish vector, the buyer needs to raise the price above the range of 48-50 and protect it.
For a more detailed explanation of how to read charts and consider different timeframes when looking for trades, you can refer to the article
Comment:
On the Daily timeframe, the seller's zone has expanded and become more pronouncedly red, with the lower boundary now at 46.34. There was interaction with this zone today, resulting in a seller's reaction. It is advisable to look for sales. It's preferable to look for sales from the defense of the upper boundary of the sideways movement by sellers (48.74) on the 30-minute timeframe. However, the price may not return there.
Comment:
The first target on the Daily timeframe is 34.83. The second one is 32.3.
Comment:
Good luck with your trading!
