Despite the fact that last week we commented that $BTC had managed to break the range to the upside, during this week we have not seen a continuation move and the price has remained in the previous range between $32k and $27K, leaving a similar range to the previous weeks.
On the other hand, I want to highlight the graph of the dominance of Bitcoin (BTC.D). Since the beginning of May has registered an upward movement and this week has reached the resistance zone of 48-49%, generating a slight rejection movement from the resistance.
This resistance at 49% is very relevant because if broken, it would give confirmation to the triple floor figure we see in the chart, which could imply a macro trend change and which would translate into a more bullish BTC than the Alts market. But currently that resistance is still in place and may be a rejection zone in the short term.
The rest of the market continues with mixed results, on the negative side highlighting the -40% weekly -40% of $LUNA the -20% of $EGLD, while we see tokens like $ORN or $FLM rising +20% or $BEL, the token we are going to analyze. Rising +50% weekly after making a +180% move at the beginning of the week.
Bella Protocol is a platform that provides a suite of DeFi products designed to make crypto banking simpler and more accessible. The protocol aims to create a better user experience by eliminating high fees and slow transaction issues that can plague some platforms.
The $BEL token is an essential component of the Bella Protocol ecosystem, serving as a reward token and allowing its holders to participate in the governance of the platform.
The protocol was built by the ARPA team, a blockchain-based Layer 2 solution for privacy-preserving computation.
From a technical point of view, $BEL has multiplied its price by 4 times since the end of May, generating a breakout from the bearish trend line of the last year.
As we can see in the chart, on May 29 $BEL was trading at $0.32 and generated an upward momentum that led it to break the downtrend line during the last days of the month to make a bullish replica movement during this week.
If we pay attention to the trading volume, we see how it has increased exponentially from this point, generating new highs and lows that generate a short-term uptrend and that is best seen in a 4h timeframe.
In this chart we can see how the breakout movement is generated with increased volume and with RSI breaking to the 70 zone, to subsequently perform a pullback to the broken trend line and perform the replica movement reaching the 1.618 level of the Fibonacci Extension.
Currently the price is at the $1.20 zone, which has been resistance since April, but is currently supporting the price after the breakout. It could be the first support zone to consider in this short-term trend. The next support is at $0.70, the area of last week’s pullback.
Regarding what we can expect from the evolution of the price of $BEL, the most logical option would be a consolidation phase between these marked ranges, even with some minimum in the area of $0.50 (Resistance in May that had no pullback marked on the chart) given the high volatility that is registering this token.
In the case of seeing bullish aftershocks, the next resistance above the high of $2.36 is in the area of $2.80-$3.
Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The Belobaba Crypto Fund team only shows our analytical view of the market.