Connect with us
Active Currencies 14413
Market Cap $2,678,845,520,328.30
Bitcoin Share 49.77%
24h Market Cap Change $-1.54

Chiliz revisits a support zone, bulls can look to take profit at…

2min Read
Chiliz revisits a support zone but volatility could be ahead

Share this article

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Chiliz revisits a bullish order block
  • Buyers beware of a bearish Bitcoin

Chiliz has performed well in the month of September. The rally two weeks ago measured 60% from the lows to the swing high. Despite a 15% pullback over the past week, the longer-term outlook remained bullish for CHZ.

Yet, a drop below $0.22 would invalidate this idea. In a previous article, a bearish divergence was seen, and the selling pressure on Bitcoin forced a sharp pullback for Chiliz.

Chiliz at a bullish order block, but choppy waters ahead

Chiliz revisits a support zone but volatility could be ahead

Source: CHZ/USDT on TradingView

The daily timeframe had a bullish structure. Therefore on the 12-hour chart, a bullish bias was warranted. The $0.18 area was an important support zone from which CHZ rallied to $0.28 earlier this month. In mid-August, the $0.24-$0.25 area had acted as resistance.

At the time of writing, the price had slipped below the $0.247 key level. However it was still within the bullish order block formed a few days ago. Hence, a buying opportunity of relatively higher risk was present.

To the upside, a move to the $0.28-$0.3 region could materialize in the next week or two. However, such a scenario could be heavily reliant on Bitcoin holding on to the $18.6k support. BTC climbing back above the $20k mark would aid CHZ sentiment as well.

Net inflow over the past two weeks- are derivatives the play?

Chiliz revisits a support zone but volatility could be ahead

Source: CryptoQuant

In mid-September, a couple of days of heavy CHZ outflow was seen from the exchanges, according to data from CryptoQuant. This outflow suggested coins could have been sent to cold storage and a sign of investor accumulation. Yet, in the two weeks that followed, CHZ saw steady inflow into exchanges even as the price rallied to $0.28.

Overall the inflow in the past few days suggested that volatility could be around the corner. Bitcoin’s fall beneath $20k could be the beginning of a larger downward move. Fear of further losses could see market participants sending CHZ to exchanges for selling.

Invalidation of the bullish notion set forth would be a daily session close below the $0.22 mark. To the north, bulls can look to take profit at $0.28. The bias was bearish for Bitcoin, and BTC could drag CHZ lower over the next few days. Hence, caution was key.

Share

Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.