Mayhem and chaos enters the crypto markets. Once again we just got a bit, too. Euphoric didn’t, we things moved a bit too quickly. Once again the macro economical factors are just not in our favor still. I mean let’s check it out ave is down today massively down 12.48. We’re still holding rank 42 with a 1.2 billion dollar market cap. Unfortunately, we haven’t reached the price level yet.
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How Bitcoin affects Defi?
So, let’s check out what happened to bitcoin’s big fat rising wedge, a typical classic bearish reversal pattern. We lost it, we were forming this ryzen wedge. We were aware of it, we just kind of put it to one side on the back burner and forgot about it. So, as a result I missed a short opportunity here. But, we have moved down to around that 21.6k price level. So, we’ve lost this uh support here on this typical bearish reversal pattern known as rising wedge we’re not oversold yet on the daily time frame. But, the bollinger bands do show that we are now actually under the lower level which could usually reflect that it’s a good time to potentially go along, not financial advice. But, it doesn’t mean that we crashed quite strongly and aggressively. So, we saw a massive plummet down now. If we do see continuation for bitcoin here to the downside.
I do anticipate that we might retest some of these lower support levels. The first one in mind is going to be 20.7k the next one will be 19.9 000 and there’s still a chance that we could see some continuation to the downside here. I’m talking about much much lower retests as a resistance and we even come down. We test that 17.6k level. Can you imagine that I actually can imagine that happening. I really can imagine it happening depending on how bad these markets actually do get. We are oversold on the four-hour RSI typically being oversold as you see. If we look historically you can see right here every position where I oversold on the bitcoin RSI. We usually do get a nice bounce, so we might still get a bounce at best retest this 24k level and then see another rejection to the downside. So, we could try and get back into the rising wedge.
200-week Bitcoin circle
However, I do think it’s quite unlikely on this particular occasion. So, let’s see what happens really. If we look at the one week time frame quick the two and just check out that 200 week moving average. You can see actually where are we bitcoin lost the 200 week. Again we were above the 200 week moving average now. We’ve just lost it so a bit of a shame but we did get back through it and that was a very very bullish indicator. We just couldn’t sustain another crazy thing that’s happened. That is not working in bitcoin’s favor is the DXY chart right here we can see the dxy is moving so fast over the last few days. It’s already up 20 since like I say last few days the last few months shall we say from, basically, last year summer in one entire year should we call it dxy is up 20.. So, as that’s been pumping over time bitcoin has done the inverse. It’s just done the complete opposite. So, the DXY is doing everything. We do not want to do it at the moment. So, it’s a bit of a shame to see anyway we’re here even today. So, let’s check out AAVE 2022-2030 and what’s going on with the price analysis and just kind of just sort of gauge. What could happen next? So, what we are really trading in is one massive broadening descending channel here. So it does demonstrate and reflect a lot of volatility. It also reflects that we are in a strong downtrend for our friend AAVE 2023 here now. We did get back through this key 97 level of support at one point.
Lost or Win?
But, we have flipped it back into a resistance which is not really a good thing. The reason why this is a resistance for me is because if we look back here in December 2020. There were quite a few touchdowns around this level. As you see around that 96 is dollar level. So, it’s quite a sensitive area. Unfortunately, we have lost it and we have flipped that back into a support now. But, you can even see here just on the eighth chart that we still had a bit of a rising wedge formation and we lost that. So, again do I anticipate a bounce to the upside. It’s very possible it’s hard to say exactly where, but we are leaning towards being oversold on the daily RSI on the four hour. I mean we’re putting through our first green candle in a while the bowling abandons with right at the bottom, usually that’s a good time to go long when you’re at the bottom of the bollinger band. If you look on the blue you go long on the blue you go long on the blue you go long. So, I’m anticipating a bounce to the upside here on this oversold position on the four hour RSI. So, I’m gonna buy some Solana today. I’m gonna buy some AAVE today, in 2022.
The downside for AAVE
I think they can both do typically quite well. I’d like to trade in fearful scenarios. What do you think can happen for ave and then in the next few days. What I think we need is a re-test of this support at 96? If we get rejected then we see continuation to the downside of the next level of support. I’d be looking at it probably at the top of this ascending triangle right here which is exactly where we’re just looking about 75. If we do get a rejection here and we see continuation to the downside for AAVE. So, it wouldn’t look typically bullish, it would be quite a shame of course we’re very very far away from the all-time highs. I don’t think we’ll see any all-time highs for a while for AAVE even though by the next crypto ball run. I do think some great targets for AAVE are quite high, we’re looking at between 800 and 1050 over here for our friend AAVE.
The dark blue region
It’s been a great week. We had 1-6 weeks of green candles. You can’t keep printing green candles. So, it could just be a red one before we see a bullish reversal. Maybe this is just a bit of fun. But, maybe we get the worst state of crypto that we’ve ever seen before we actually come all the way down to like these ridiculous low levels. I don’t think it’s ever going to happen. Personally, I think the lowest bitcoin is going to go is still 17.5 maybe with a very very quick scan wick to 15 000. But, I still think we’re looking rather good and on the weekly time frame we had a fantastic six weeks for AAVE and the rest of crypto. We’re cooling down, we’re retracing time for some more healthy accumulation, a bit of a pullback and a reset button for avia and the rest of the crypto markets, in my opinion. So, fear and greed index today 33 fear. It’s gonna happen in a bear market, it’s not extreme fear, it’s just a normal fear rainbow chart. We’re still sitting in that dark blue region which does say effectively. It’s a good time to start buying cryptocurrency.
This article is a transcription of a video made by Jacob Crypto Bury
Original video: https://youtu.be/5c1DeqplOiM