Bitcoin continued its consolidation pattern in the recent period. It has been operating in the $18.3-20k price zone, and holding solid market structure in the process, reflected by successive daily candle closes above the $19k level. The market remains in extreme fear deep into the crypto winter period, amidst global uncertainty with a strong dollar that has yet to show definitive signs of slowing down at this stage.
Chainlink (LINK) has formed a distribution pattern in the recent period, all while holding above the critical $6.65 support level on the daily chart. It has failed to stay above the 200 MA on the 4h chart for an extended period of time, in a market that has been dominated by futures and derivatives traders in the $6.37-8.55 price zone. Chainlink has been relatively weak in the market, and it is important that it doesn’t lose the $6.65 and $6.25 support levels in order to avoid further downside.
Polygon (MATIC) has been showing interesting behaviour in the charts over the past few weeks, seemingly showing a bull flag under formation since the second half of July. This is notable since the Layer-2 token has displayed higher levels of volatility than other cryptocurrencies in the market, which could be an implication for a break of the pattern in the coming period. This is particularly significant as Polygon has printed successive candles above the 200 MA on the daily chart, and should it hold it as support for an extended period of time, we could be looking at another major move in the coming period.
Solana (SOL) has displayed significant weakness in the recent period, going below $30 and reaching levels last seen in mid-June 2022. Investors would be wary about the implications if there were to be further downside for the token, especially if it breaks below the $26 price level. It has also remained distant from the 200 MA on the 4h chart, which is another sign of bearishness as it had previously tussled with the same level as recently as the first week of October 2022.