Low volatility week in the crypto market largest cap assets, where we see $BTC closing at +2%. After last week bearish move this is not a good sign, as the most bullish scenario was for a quick recovery of $BTC that would leave the new low as a false move and this situation so far has not happened.
What we have seen is how the $18K support is acting as short-term resistance every time the price approaches that zone, as can be seen in the 4h chart.
This $18k zone is crucial to be able to raise possible scenarios, because if it continues to act as resistance, it may lead to the creation of new breakout lows. If, on the other hand, the price recovers this zone, we could see tests to $20k/$21k.
In the rest of the market I would like to highlight the recovery of $CHZ, Chiliz’s token is approaching the weekly close with a +25% result, thus recovering the $0.25 zone from where it fell the previous week.
As some of you may already know Chiliz is the driving force behind Socios.com, the rewards and fan engagement platform through the use of FanTokens. This platform provides sports and entertainment entities with a branded Fan Token (FTO) platform that is used as a fan interaction tool to help these organizations engage and monetize their audiences more effectively.
Socios.com features major sports and e-sports entities, such as AC Milan, Paris Saint-Germain or FC Barcelona. Chiliz’s token, $CHZ, is used to purchase these Fan Tokens, which give the user the power to make decisions through surveys and access to sweepstakes.
Regarding the technical situation of $CHZ, last week’s bearish movement dragged its price down to $0.16, a support zone that made the price bounce during this week.
As we can see on the chart, unlike $BTC, $CHZ continues to respect the summer support zone. It is even starting to create an uptrend that would be confirmed with the creation of a new high above $0.33.
This trend is forming a bullish channel, which is a formation that is usually broken to the downside, but usually occurs in uptrends, which could mean, in case of a downside move, the last support zone is at $0.10/$0.08.
If we put the focus on the last two months, we see that a short-term market widening is being created, with the creation of higher highs and lower lows.
This widening situation usually occurs in scenarios of trend changes, but being in a short-term upward movement can cause a bearish breakout of the channel that we saw in the previous chart.
If we see that the chart begins to leave lower highs and lows above $0.165, it can cause the creation of a Diamond pattern, which would give strength to that channel breakout movement. This formation would be disabled in the event of a bullish breakout on volume to the $0.30/$0.32 resistance.
Despite the fact that the technical situation of $CHZ continues to show signs of indecision, it maintains a much more bullish structure than the other tokens, showing strength at the supports and leaving rebound movements, which is why I consider it a token to take into account.
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 team only shows our analysis and investment tools, and how they help us in our operations when making decisions.