The relief rally in the United States equities markets took a breather this week as all major averages closed in the red. Traders seem to have booked profits before the busy economic calendar next week.
The S&P 500 index dropped 3.37%, but a minor positive for the cryptocurrency markets is that Bitcoin (
TWT/USDT
Trust Wallet Token (TWT) has continued its northward march, suggesting that traders are buying at higher levels and not booking profits in a hurry. That increases the possibility of the extension of the uptrend.
The bulls will attempt to drive the price above the overhead resistance at $2.73. If they succeed, the TWT/USDT pair could rally to the psychological level of $3 where the bears may try to stall the up-move.
If buyers bulldoze their way through this obstacle, the uptrend could reach the pattern target of $3.51.
The bears are likely to have other plans as they will try to defend overhead resistance at $2.73. They will have to pull the price below the 20-day EMA ($2.30) to gain the upper hand.
The four-hour chart shows that bulls have been buying the dips to the moving averages. Although the moving averages are sloping up, the RSI is showing a negative divergence, indicating that the bullish momentum may be weakening. This may change if bulls thrust the price above $2.73 as that could attract further buying.
The moving averages are the critical support to watch on the downside. If the 50-SMA support collapses, several short-term traders may book profits and that could pull the pair down to $2.25 and thereafter to $2.
AXS/USDT
Axie Infinity (AXS) has been in a strong downtrend but it is showing the first signs of a potential trend change. Buyers pushed the price above the downtrend line on Dec. 5 but could not sustain the higher levels, as seen from the long wick on the day’s candlestick.
A minor positive is that the bulls have not allowed the price to break below the moving averages. This shows that buyers are trying to flip the moving averages into support.
The moving averages are on the verge of a bullish crossover and the RSI is in the positive territory, indicating that the momentum may be shifting in favor of the bulls. If the price breaks and sustains above the downtrend line, a rally to $11.85 is likely. This level is expected to act as a major hurdle on the upside.
The bullish view could invalidate in the near term if the price turns down and breaks below the moving averages. The AXS/USDT pair could then slide to $6.57.
The four-hour chart shows that bears are vigorously defending the downtrend line and the bulls are buying the dips to the 50-SMA. The 20-EMA has flattened out and the RSI is near 47, indicating a balance between supply and demand.
A break and close above $8.70 could shift the advantage in favor of the bulls. The pair could then rally to $9.28 and later to $10. Alternatively, a break below $7.86 could suggest that bears are back in the driver’s seat. The pair could then slide to $6.87.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
