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 continued my analysis by moving to the weekly timeframe and on this timeframe, I could see more market activities on the price chart.

Looking carefully at the market, I was able to spot a key level and this level is functioning as a resistance level to the market price.

It is expected for the market to be rejected whenever it trades towards this level as there are more sellers in this level than buyers..

I then proceeded with the analysis by checking out price data on the daily timeframe.

On this timeframe, I could see noise in the market as the buyers and sellers are manipulating the market inorder to push the market to their preferred level.

Checking this level carefully, I was able to spot a key level and this level is functioning as a support level to the market price.

This level is a valid level as it has severally been tested by the market and the market has been unable to break below.

Getting to the 4hr timeframe, I could see series of market noise, different activities signifying the presence of bears and bulls in the market.

And from my analysis, I noticed that the bulls are stronger than the bears and as such I identified my take profit level above the price chart.

When the market begins its bullish move, I expect it take my profit on the above level.

I then moved to the 2hr timeframe as it is on this timeframe that I take my entry into the market.

On this timeframe, I noticed a bullish break of structure and I expect the market to retrace downward to mitigate this bullish order block before continuing on its bullish move.

Having my bullish bias, I then decided to search for confluence using the rsi indicator.

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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.

Applying the rsi to the monthly timeframe, I noticed that the rsi is progressing from the overbought region to oversold region.

And this is an indication that the market is soon to be oversold, impling a change in strength from the sellers to the buyers which is in alliance with my analysis using support and resistance strategy.

Getting to the daily timeframe and applying the rsi indicator, I could see the rsi diving towards its 20% line.

And when it gets to its 20% line we can say that the market is being oversold and an oversold market signals a bulllish trend reversal signal.

That is a change of strength from the bears to the bulls in the market.

I then moved to the 2hr timeframe in search of entry into the market.

Having my bullish bias, I placed my buy order on the closest support level to the market and my take profit was was placed on the market closest resistance level, just as seen above.

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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.