QUICK Analysis

A week of low volatility in the crypto market. $BTC started with a rejection movement from resistance to reach the short-term support zone and generated a reversal movement that poses a scenario very similar to previous week, with a higher low, but without highs that confirm the upward micro-trend. 

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BTC’s dominance remains in this small range between 43% and 44.50%, which as we indicated last week is a consolidation zone in support after the break of resistance, but it is also the intermediate zone within a sideways channel in which the price has been trapped since May last year.

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The rest of the market is approaching the weekly close with very mixed results, from the -10% drops of $YGG or $IOTA to the increases close to +20% accumulated by tokens such as $QNT, $CRV or $MATIC, that we analyzed a few weeks ago indicating the formation of a technical figure that could cause a reversal. I leave the link to the analysis below:https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8863738123698129945&li_theme=light

This week I would like to highlight the evolution of $QUICK, the native token of QuickSwap, the decentralized Exchange of the Matic network, which managed to double its price, going from trading at $53 to reach $120 in just two days, although this area near the trend line acted as resistance generating a rejection of the price.

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As we can see in the chart, the price has a bearish guideline since its listing on the main exchanges, generating lower lows and highs that leave its historical low at $38 and is the support zone to take into account.

Regarding resistance, the closest was in the area close to $90 and although the upward movement managed to pierce it for a few hours, we will have to be attentive to its evolution to see if it is still valid or if it acts as support after the rejection from the trend line.

Also noteworthy is the resistance at $150, which was the support zone in March, but can act as resistance in a hypothetical upward movement of the price.

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What has caught my attention in this chart is the formation of a harmonic pattern that warned of the rejection that was generated on Friday from $120. It is a Bearish Bat pattern, which is formed by a bearish movement (X-A), to subsequently generate an A-B-C-D movement. If it meets the levels in the image it can generate rejection from the D point.

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If we look at the $QUICK chart with the Fibonacci levels drawn, we can see how this pattern is fulfilled with an A-B movement that stops at the 0.50 Fibonacci X-A, to later make that C-D replica to meet the conditions. It has to generate a rejection from the 1.618 or 2.618 Fibonacci extension zones. 

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If we look at the chart, we can see how the price reaches the 2.618 level of the Fibonacci extension of A-B-C and that rejection is generated, which for the moment has reached its first objective and could even reach $64 as the second objective of the technical formation.

So we will have to keep an eye on its evolution to see if it meets this second objective or if it finds ground in the area of the first objective.

Finally, remember that nothing in our articles can be considered as investment advice, everyone must do their own analysis and develop their own trading strategy. From the Belobaba Crypto Fund team we share our analysis and investment tools and how they help us in our operations when making decisions.