will avalanche [AVAX] Retest the $19.5 level before offering more profits

Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.

Bitcoin [BTC] It broke above the $20.4K-$20.5K area that I rejected a week or so ago. During the weekend, a decrease in volume and an increase in volatility may occur. In the short term, both Bitcoin and Avalanche [AVAX] You have a bullish bias.

A pullback to $20.8K or even $20.4K for BTC could bring down AVAX. AVAX price charts highlight how important $19.5 and $20.5 are in the coming days.

AVAX – 4 Hour Planner

Source: AVAX / USDT on TradingView

For the past two weeks, the price has been unable to breach the $20.5 resistance area, the lower red square. Meanwhile, the $18.7-$18.7 area acted as a strong support area. At the time of writing, the price has returned to resistance.

Further north is another support area at $22. In August, this area provided support but was broken. Not visited yet. A strong move below this level indicates the possibility that if the price returns to the $22, selling pressure could confuse the buyers.

The Wonderful Oscillator (AO) was above the zero line to show bullish momentum. Chaikin Money Flow (CMF) was also above the +0.05 mark, showing significant capital inflow into the market.

AVAX – 1 hour chart

The avalanche presents the possibility of a short-term dip before moving to $22

Source: AVAX / USDT on TradingView

The four-hour charts do not indicate a pullback. In fact, they have shown bullish strength in the short term. So did the hourly charts. Although the Relative Strength Index (RSI) is back at 54, it still indicates a bullish bias for AVAX. Unbalanced trading volume (OBV) has also slowly increased over the past few days.

The range between $19.2 and $19.6 shaded in cyan was of particular interest. In early September, it served as resistance to a short-lived rally. Since then, this area has been mined cleanly on three occasions. It moves with high momentum up and down past this area with barely retry.

A move south could have come to test the liquidity in this area. Such a move could provide a good buying opportunity, with a stop loss below $19. But we must remember that a pullback should not happen, and AVAX may also explode towards the $22 area.

conclusion

Bitcoin managed to hold above the $20.8K support and is showing signs of further gains towards the $22.4K region. If Bitcoin continues to climb, the avalanche has a good chance of following suit. A dip towards the $19.5 mark could be a buying opportunity as well. $20.5 and $22 are the important resistance areas near AVAX.

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