This article discusses the current position of AVAX/BTC, which has been in a descending channel since December 2021. It also analyzes the recent rally and short-term prospects.
Current Situation on AVAX/BTC Chart
Since December 2021, the AVAX/BTC chart has been trapped in a descending channel. This indicates persistent market pressure, as every rally has not been able to break above previous highs. Current conditions show alarming signs where assets fail to overcome established resistance levels.
2023 End Rally and its Consequences
From October to December 2023, AVAX/BTC demonstrated a sharp rise from the channel's lower boundary to the upper boundary. However, this upward movement was forcibly halted at the channel's upper boundary and the 0.618 Fib level, leading to a sharp reversal and loss of rally momentum.
Why Another 'Exit Pump' Could Follow?
At present, AVAX/BTC is again at the channel bottom. Several factors may support a short-term rally:
1. Support at the bottom of the channel - this area has consistently held since 2021, providing a technical base.
2. Oversold conditions - bearish sentiment can trigger capitulation, often followed by sharp corrections.
3. Chart behaviors - repeated actions within the channel suggest that traders might expect potential rallies.
While nothing is guaranteed, the current position of AVAX/BTC draws parallels with the rally of October-December 2023. If history repeats, the coming months might lead to another move towards the channel's top.
