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 bearish.

And moving to the weekly timeframe, I could see more market activities, I could see more candlestick than on the monthly timeframe and this is because each candle here is formed within the trading period of 7days.

And from the above screenshot, we can see that I was able to identify a key level and this level is functioning as a resistance level to the market price, that is, the market is expected to be rejected whenever it trades towards this level.

And looking carefully, we would notice that this level has been severally respected by the market price and we expect it to keep being respected except there is an increase in buying pressure.

And moving to the daily timeframe, I could see the market more clearly, I could see more candles in the market, as this shows the presence of the buyers and sellers in the market.

And looking carefully, I was able to spot another key level and this level is functioning as a support level to the market price, and we can expect to see a bullish rejection when the market trades towards this level.

And from the screenshot above, we can see that the market has began to form bullish rejections as it trades towards this support level.

And getting to the 4hr timeframe, I could see the market more clearly and I could see lots of noise in the market as the buyers and sellers struggle to drive the market to their preferred direction.

And from the above screenshot, we can see that the bears were in control as the market formed lower lows and lower highs, and then the market traded towards its support level and got rejected.

Immediately after the rejection, we can see the market forming series of higher highs and higher lows which shows the change of strength in the market.

And getting to the 2hr timeframe with my bullish bias I decided to search for bullish entries into the market.

And looking at the market, I was able to identify a bullish order block which I expect the market to mitigate before continuing on its move.

And before then, I decided to search for trading confluence using the relative strength index 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 could see that the market is being oversold and an oversold market is detected when the rsi crosses below its 20% line.

And an oversold market is understood to be a bullish trend reversal, that is a change in market strength from the bears to the bulls and this is in alliance with my analysis using support and resistance strategy.

And getting to the daily timeframe, we can see that the market is approaching its oversold region, as the rsi is gradually getting towards its 20% line.

And when this happens, the market can be said to be oversold and then we can expect to see a bullish rejection from the Market.

And moving to the 2hr timeframe In search of an entry into the market, I decided to place my entry on the bullish order block of the market

And then my take profit position was placed on the closest resistance level to the price chart.

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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.