Bitcoin fell from its local top at $22.8k formed over the past week, to its current region in the $18-19k zone. On a macro scale, it continues the consolidation and accumulation pattern it began forming since its market crash in mid-June 2022, with the bottom so far being in at just over $17.5k, formed on June 18. The bearish movement reflects Bitcoin’s failure so far to break above the zone and form new local highs, as the premier virtual asset fell below the 200 MA on both the 1h and 4 charts.
Meanwhile, Solana (SOL) also fell significantly, from the $39 price reached on September 13, to just above $30 at the time of writing. It is critical for Solana to remain above the $28-30 support zone, as further downside will take it to lows not seen since July 2021. Like Bitcoin, it fell below the 200 MA on the 1h and 4h charts, which have now become significant resistance levels. The RSI for Solana on the daily chart remains above the 40 level, and it would be a significantly bearish signal should it lose this support level and drop into the 30-40 region.
Avalanche (AVAX) also dropped from its local top at about $22 per token to about $16.5 over the past week, reaching its lowest price since mid-July 2022. Its bearish behaviour is notable in the sense that it failed to break the $22 resistance, resulting in a lower high than its mid-August peak at about $30. It would need to hold support in this area in order not to potentially fall to the $13.5-14 price zone, as that would be a further blow to the bulls for one of the cryptocurrency market’s most prominent blockchains.
Polygon (MATIC) has been forming a bearish distribution pattern since the second half of July 2022, and notably failed to break the 200 MA on the daily chart, which so far has remained a strong resistance level. At the time of writing, it seemed to have broken below the $0.75 support level, although a close and confirmation on the daily chart is necessary to forecast a potential move to the downside. Should this move materialize, then the $0.60 level could be within sights of the market bears.