The month of February is coming to a close, with little volatility in the crypto market’s largest capitalisation tokens, which are maintaining similar prices to those at the close of January, although with a different scenario. The example of $BTC is one of the clearest, as its monthly accumulated is 0%, but these 25 days have served to move from the short-term accumulation phase with which we closed January, to this consolidation phase that we have been discussing in recent posts.
$BTC accumulates -5% weekly after the downward movement from the $25.3k resistance, which is reaffirmed, leaving a rejection up to $23k.
This decline has created a short term declining low, but if we change the viewing period to 1d candles we can see that so far the tertiary uptrend of the last month continues, which has its rising low at $21.5k.
This low at $21.5k may act as support, but being a consolidation phase we are likely to see lower lows, that may go as low as the $18k area.
But our reference area remains the resistance at $25.3k, if this is broken the upward movement could become exponential, but as long as this does not happen the long term downtrend will continue.
Regarding the rest of the market the most striking case is $PERP. The @Pepetual_Protocol token has registered a +40% result in a mainly bearish week for the market in general.
After the short term resistance at $0.80 was broken at the beginning of the week, a pullback movement was generated, which led to Friday’s exponential movement that set the weekly high at $1.30.
Despite this week’s growth, its long term situation has not changed, as the price remains below the $1.50 resistance benchmark, as can be seen on the daily chart.
We will have to keep an eye on its evolution, as we will be measuring the strength of its resistance, which can provoke bearish rejections, but if it breaks to the upside, the scenario of a change in the main trend will be confirmed.
Another token that has caught my attention this week has been $AVAX and in this case not because of its good performance, but because it created a double top figure on the hourly chart that allowed us to profit from the bearish movement.
The Avalanche token had a very good performance in January, but since the beginning of February it has been sideways around the resistance zone.
After several tests of the highs, the price started to form this double top formation at the beginning of the week, and then confirmed it with the break of the low at $20.
This figure reached its target at $18.50 after first making a pullback to $20.7, leaving a clear figure that was executed to perfection.
This weekly movement does not change the general scenario of $AVAX, which maintains as the reference resistance at $21/$22.5 that is provoking rejections every time the price approaches. On the downside, the first resistance is at the low of $17. If the price breaks this zone, it is likely to return to the December highs.
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 analysis and investment tools, and how they help us in our operations when making decisions.