Nick from Cheeky Crypto is back to delve into the world of Avalanche (AVAX), a cryptocurrency that has captured the attention of many investors. In this insightful video, Nick analyzes the recent price action of AVAX, providing valuable insights into its potential future movements.
Technical Analysis – Unveiling the 1-Hour Timeframe
Focusing on the 1-hour timeframe, Nick examines the AVAX/USDT trading pair on Binance. He highlights the notable support levels provided by the 50 EMA (Exponential Moving Average) and 50 SMA (Simple Moving Average), indicating AVAX’s resilience and potential for upward movement. Despite occasional dips, AVAX has demonstrated impressive performance, suggesting a bullish undertone.
Smart Money Concepts: Decoding the Hidden Signals
Nick introduces the concept of Smart Money Concepts (SMC), emphasizing its significance in identifying market movements. He observes a change in characterization on October 29th, marking a potential turning point in AVAX’s trajectory. While there is no clear break in the bullish structure, Nick anticipates a continuation of the upward trend. However, he also acknowledges the possibility of a correction, possibly retesting the 50 EMA and 50 SMA levels.
Daily Standpoint: A Bird’s-Eye View of the Market
Shifting to the daily timeframe, Nick analyzes the price action from a broader perspective. He observes that the price has exceeded expectations, potentially in an extended fifth wave. However, the daily stochastics indicate a potential loss of momentum, suggesting that the current five-wave move may be nearing its end.
A Possible Correction: Navigating the Waves of Change
Nick delves into Elliot Wave Theory, a popular technical analysis technique, to predict the potential path of AVAX. He suggests that the completion of wave one may lead to a wave two retracement, with a potential range between $9.88 and $14.70. This retracement could even extend to the previous support level, opening the door for an even stronger bullish run in the future.
Weekly Perspective: Zooming Out for a Long-Term View
Expanding the view to the weekly timeframe, Nick revisits the previous accumulation zone between $7 and $10.6. He identifies a bullish market low around $8.61, reinforcing the overall bullish sentiment. While a retracement and correction are expected, Nick maintains a positive long-term outlook for AVAX. The weekly overbought condition suggests a potential correction within the $9.88 to $14.70 target range.
Long-Term Outlook: Embracing the Opportunities
Nick anticipates an accumulation phase during the correction period, providing opportunities for investors to enter or increase their holdings in AVAX. He speculates on the potential formation of patterns, either an ABC structure or another five-wave pattern. The weekly timeframe does not reveal any notable Smart Money Concepts, leaving the door open for various interpretations.
Closing Statements: A Call to Action
Nick concludes the video by encouraging viewers to like, subscribe, and turn on notifications to stay updated on the latest Cheeky Crypto content. He emphasizes the importance of accumulating AVAX during the anticipated correction phase before the next significant bullish swing.
Nick ends the video on a positive note, wishing viewers a fantastic day and expressing his gratitude for their continued support. His insightful analysis of Avalanche AVAX provides valuable guidance for investors navigating the ever-changing cryptocurrency landscape.