Bitcoin tumbled over the past week, falling towards the $39-40k support zone. The technical dip in price followed the distribution pattern which took place between March 27 and April 5, 2022. Its weakness has been evident, as Bitcoin broke successive support levels at $44k, $42k, and $41k in a relatively short period of time. Holding above its current support area is critical, as a failure to do so could pave the way towards a significant price fall to the mid-$30k levels. The altcoin market was significantly impacted as well, due to its high correlation with Bitcoin.
Avalanche (AVAX) declined from a high of $103 on April 2, to a low of $73 on April 11, representing a 29% fall in price. Between April 6 and 8, it held the 200 MA on the daily chart as support, before breaking though and holding it as resistance before tumbling further in price. It is currently sitting above the bottom trendline of a large price channel resembling a bearish flag, which has been forming since mid-January 2022. It remains to be seen whether it will break the support or rebound to the $100-120 price area.
Polygon (MATIC) also formed a distribution pattern between March 27 and April 4, before breaking through the $1.62 support on April 5 and falling to a low of $1.31 on April 11, 2022. It had failed to break the significant $1.75 resistance level, which coincided with the 200 MA on the daily chart, following its price rise from the middle of March. Breaking and closing below the $1.31 level would potentially lead to a drop to the $1.18-1.24 support area, while buyers in the $1.31-1.35 zone would be attempting to reclaim the $1.50 level as support.
Chainlink (LINK) dropped to a low of $13.51, reached on April 11, from its last high of $18.30, attained on April 3, 2022. The failure to hold to $18 level represents substantial weakness for the token, as it reflects a failure to break a long-term downtrend. It has remained some distance away from the 200 daily MA in the recent period, and is not far from a historic support of $12.65, a break of which would potentially result in significant long-term bearishness for Chainlink.
